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nika2105 [10]
3 years ago
12

Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $540,000. In addition to the purchase price, FVI makes the followi

ng expenditures related to the acquisition: broker's commission, $34,000; title insurance, $2,400; and miscellaneous closing costs, $6,800. The warehouse is immediately demolished at a cost of $34,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.
Business
2 answers:
Dafna1 [17]3 years ago
7 0

Answer:

The amount FVI should record is $ 617,200

Explanation:

The amount FVI should record as the cost of the land includes the initial purchase price ,broker's commission,title insurance ,miscellaneous closing costs as well as the cost of dismantling the old warehouse since all of these costs were incurred to bring the asset acquired to its present condition and location.

land purchase price                  $540,000

broker's commission                $34,000

title insurance                           $2,400

miscellaneous closing costs    $6,800

Cost of demolition                    $34,000

total costs                                 $617,200

Blababa [14]3 years ago
3 0

Answer:

Cost of land = $617,200

Explanation:

<em>The cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.</em>

Therefore the cost of the land would

=540,000 + 34,000 + 2,400 + 6,800 +34,000

= $617,200

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Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following da
RUDIKE [14]

Answer:

$492,925

Explanation:

Net operating income of product Alpha- 32 at a price of $79.50 if the sales forecast is correct.

Unit sales = 92,150 units as per sales forecast

Selling price per unit = $79.50

Contribution:

= Sales - variable costs

= (units sold × Selling price per unit) - (units sold × Variable cost per unit)

= (92,150 × $79.50 ) - (92,150 × $60.00)

= $7,325,925 - $5,529,000

= $1,796,925

Net operating income:

= Contribution - Fixed cost

= $1,796,925 - $1,304,000

= $492,925

5 0
2 years ago
how all calculations: Palmer Inc. currently produces 110,000 units at a cost of $440,000. Next year Palmer Inc. expects to produ
Mekhanik [1.2K]

Answer:

Will increase to $460,000

Explanation:

Palmer Inc. currently produces 110,000 units at the rate of $440,000

Next year they are expected to produce 115,000 units

Since the cost is variable, the total cost can be calculated as

(440,000/110,000) × 115,000

= 4×115,000

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Hence the total cost is $460,000

6 0
3 years ago
Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
Tamiku [17]

Answer:

The correct answer is letter "B": reduce productivity. Other things the same, this decrease will be larger in a poor country.

Explanation:

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3 0
3 years ago
Which of the following is an example of​ investment? A. a person depositing $ 100 a week to her savings account B. a person's an
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Answer:

C. the purchase of new buses by Greyhound

Explanation:

The investment is the amount that should be invested in order to generate the income

So as per the given situation,the option C is correct as if we puchase the new buses so there is a big investment but after investing into it it generated the income on daily basis

So this should be the example of the investment

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3 years ago
A number of activities that are a part of a company's quality control system are listed below.
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Answer:

Following is the classification of  the costs associated with each of these activities that is prevention cost, appraisal cost, internal failure cost, or external failure cost.

(a) Product testing  - Appraisal Cost

(b) Product recall  - External Failures

(c) Product design  - Prevention cost

(d) Quality circle  - Prevention cost

(e) Inspection of goods - Appraisal Cost

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Internal failure costs are costs incurred to remove defects found before the customer receives the product or service. External failure costs are costs incurred to remove defects found after the customer receives the product or service.

8 0
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