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Thepotemich [5.8K]
3 years ago
10

Madison, Inc. has the following asset account balances: Buildings and equipment $4,622,500 Accumulated depreciation 622,500 Pate

nts 375,000 Goodwill 325,000 Accounts receivable 215,000 Land 2,507,500 What is the total amount that should reported on Madison, Inc.'s balance sheet under Property, plant, & equipment? Select one:
A. $6,507,500
B. $7,830,000
C. $7,207,500
D. $7,750,500
Business
1 answer:
NNADVOKAT [17]3 years ago
4 0

Answer:

A. $6,507,500

Explanation:

Accumulated depreciation is the contra asset account and it needs to be adjusted in the cost of the relevant assets to represent the net book value of the assets. Building and Land are classified as the property.

Buildings and equipment                  $4,622,500

Accumulated depreciation                <u>($622,500) </u>

Net Buildings and equipment            $4,000,000

Land                                                     <u>$2,507,500</u>

Total Property, plant, & equipment    <u>$6,507,500</u>

The following accounts are non Property, plant, & equipment.        

Patents    $375,000

Goodwill  $325,000

Accounts receivable 215,000

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Explanation:

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With borders shut down, goods that were normally imported will suddenly become very hard to acquire because getting them through travel bans is very hard and in most cases, impossible.

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Looking at the current Corona Virus Pandemic that has seen the most extensive Travel Restrictions by Countries in recent times and looking at the Scarcity being suffered by those same countries, drawing the conclusion that the Scarcity is as a result of an impediment to free movement of Goods and Services is most logical.

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4 years ago
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A firm's diversification strategy is most likely to add value if:________. a. There exist economies of scope between diversified
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Answer:

Option A. There exist economies of scope between diversified business units

Explanation:

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Explanation:

The Demand curve of a country can be written as an equation which is

C+I+G+(X-M)

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When ever consumption, investment, government expenditure or net exports increase the demand curve shifts to the right and whenever they decrease the demand curve shifts to the left.

In this case when the value of the currency foreign exchange declines, the country reduce its imports because they are now more expensive as your currency's value is declining and the exports will increase because they will now be cheaper to foreign buyers as their currency is now gotten stronger. This decrease in imports and increase in exports will  increase net exports and an increase in net exports will shift the demand curve to the right

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Answer:

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