Answer:
$75,300
Explanation:
The computation of the balance in the land is shown below;
Purchase cost
$460,000
Add:
Demolition of existing building on site
$71,000
Add:
Legal and other fees to close escrow
$12,900
Less:
Proceeds from the sale of demolition scrap
($8,600)
Balance in the land
$75,300
Therefore, balance in the land account as of December 31, 2021 is $75,300
Answer: a. Willingness to delegate and empower
To delegate means to entrust your employees with really important tasks whose results really matter to the company.
Empowerment refers to the fact that you allow your employees to decide how to go about the task in order to achieve the results.
When we look at both these terms together, we understand that delegation also means that the responsibility of the task lies with the person who delegates. This person takes a hands-off approach to the task. They will give the authority to the employees, but are equally concerned about the results. So, they work alongside the employees, keep an eye on things and help the employees to arrive at the desired results.
Answer and Explanation:
1. a. The computation of the current debt-to-equity ratio is shown below:-
Equity = Total Assets - Total Liabilities
= $705,000 - $135,000
= $570,000
Debt-to-equity ratio = Total Liabilities ÷ Equity
= $135,000 ÷ $570,000
= 23.68%
b. The computation of the debt-to-equity ratio is shown below:-
Debt-to-equity ratio = Total Liabilities ÷ Equity
= ($670,000 + $135,000) ÷ $570,000
= $805,000 ÷ $570,000
= $1.41
2. Because the higher the debt-to-equity ratio is the greater the financial risk involved, if funds are lent, the amount of equity stays the same while the amount of debt increases, as the debt rises in the capital structure, the funding is more risky, the debt-to-equity ratio measured becomes greater after borrowing the money, thereby raising the risk of the financing system.