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Andreyy89
3 years ago
15

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Hard

ing paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000. What value will be recorded for the building?
A. $175,000
B. $950,000
C. $800,000
D. $1,100,000
Business
1 answer:
mojhsa [17]3 years ago
5 0

Answer:

B. 950,000

Explanation:

The value of the building is calculated as the amount of appraisal is $374,000 for Land $1,100,000 for building and $726,000 for equipment which makes a total of $2,200,000 ($374,000 + $1,100,000 + $726,000). The amount of building appraisal is then divided by the total amount of appraisal to calculate the percentage of building appraisal which gives us a percentage of 5% ($1,100,000 / $2,200,000) and then finally this 5% is multiplied by the amount of property cost of Harding which gives us the value of building which is $950,000 ($1,900,000 * 5%).

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Note: See the attached excel file for the calculations of annual dividends expected to be paid the stock for Years 1 to 9.

In the attached excel file, the following formula is used:

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Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving technology, the equilibrium wage
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3 0
1 year ago
Three years ago, you invested $2,750. Today, it is worth $3,500. What rate of interest did you earn?
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Answer:

Rate of interest is 8.37%

Explanation:

Future Value = PV(1+r)^{3}

3,500 = 2750 (1+r)^{3}

\frac{3500}{2750} = (1+r)^{3}

\sqrt[3]{\frac{3500}{2750}} = \sqrt[3]{(1+r)^{3}}

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r = 1.0837 - 1

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Check:

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6 0
3 years ago
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Answer:

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