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Elena L [17]
3 years ago
14

A company acquired an office building, land, and equipment in a single basket purchase. The fair values were $1,200,000, $600,00

0, and $200,000 for the building, land, and equipment, respectively. The company recorded the building for $1,080,000. What was the total purchase cost for all three assets?
Business
1 answer:
oksian1 [2.3K]3 years ago
6 0

Answer:

The total purchase cost for all three assets is $1,800,000.

Explanation:

Ratios based on fair values were:

6: 3: 1 for Office Building $1,200,00 : Land $600,000 : Equipment $200,000.  Therefore, office building represents 60%, Land 30%, and Equipment 10% of the cost.

Since the Office building costs $1,080,000, using the above fair values ratio, this cost represents 60% of the total.

Therefore, the total cost will be $1,800,000 ($1,080,000/60 X 100).

The total purchase cost for all three assets is obtained using the proportion method of cost allocation based on the given fair values.

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Which element of the marketing mix is most relevant to the activity "creating value"? select one:
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The answer is "price".

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7 0
3 years ago
Claudine Corporation will deposit $5,700 into a money market sinking fund at the end of each year for the next five years. How m
valkas [14]

Answer:

Accumulated amount at the end of the fifth year = $34,112.85

Explanation:

Sinking Fund involves saving an series of equal amount periodically invested at certain rate of interest to accumulate a target amount in the future. The target amount might be for the purpose of financing a specific capital project or loan repayment.

Where an equal deposit is invested the sum accumulated (deposit plus interest earned) at the end of the final period is known as the Future Value (FV) of the sinking fund.

The FV is determined as follows:

FV = A × ((1+r)^(n) -  1)/n)

where FV- future value, A- annual cash flow, r-rate of return, n- number of years.

<em>In this question, we have the details as follows</em>;

FV-?, A-5,700, r- 9%, n- 5

<em>So we can determine the FV;</em>

FV = 5,700 × ((1+0.09)^(5)- 1)/0.09

FV = 5,700 × 5.9847

FV = 34,112.85

Accumulated amount at the end of the fifth year = $34,112.85

8 0
3 years ago
Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 909
ElenaW [278]

Answer:

Equivalent units of production= 98,700

Explanation:

Giving the following information:

Physical Units Work in process, beginning 0

Completed and transferred out 90,900

Work in process, ending 7,800

Materials are added at the beginning of the process.

<u>To calculate the equivalent units, we need to use the following formula:</u>

<u></u>

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 0 + 90,900 + 7,800*1

Equivalent units of production= 98,700

Because the materials are added at the beginning of the process, the percentage of completion is 100%.

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3 years ago
If you were to log onto www.census.gov and click on​ "Foreign Trade," then click on​ "Statistics," and finally on​ "State Export
Helga [31]

Answer:

A. ​No, because of​ NAFTA, you would expect the export of goods to Canada and Mexico to be substantial.

Explanation:

Even though exists a lot of debate surrounding the benefits of NAFTA to the US, trade agreements tend to increase more than proportionally the commercial exchange between parties. In this case, Canada and Mexico are both parts of NAFTA, so being the most important commercial partners of Ohio should not be a surprise.

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3 years ago
What ethical theory looks at the present in assessing the impact of alternate sentences, focusing less on the act committed and
Korolek [52]

Answer:

Virtue ethics

Explanation:

Virtue ethics are defined as normative ethical theories which is centered around virtues of the mind, character, and a total sense of honesty.

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