1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Maggie purchased a life insurance policy. She was concerned that if she became disabled, she would no longer be able to pay the
ehidna [41]

Answer:

The correct answer is letter "B": rider.

Explanation:

While talking about insurance, riders are provisions added to the regular coverage for life, home, or auto policies. The insured can request adding the rider under a determined fee which is usually low because there is little underwriting involved. Riders are customizable amendments that fulfill very specific needs of the policyholders.

<em>In Maggie's case, a rider was added to protect her in the case she becomes disabled because she is concerned that event can happen.</em>

3 0
3 years ago
i have my first job interview in 4 days at a frozen yogurt shop. anyone with a job please tell me what to wear / how to answer c
drek231 [11]

Answer:

Be yourself

Explanation:

Don't panic about this! I'd go with casual formal, maybe some jeans and a nice shirt?
Make eye contact a lot and always answer honestly. Goodluck! I hope you get the job <3

6 0
1 year ago
Read 2 more answers
Harding corporation sells two products, standard and supreme. expected sales are 40,000 standard and 60,000 supreme. standard's
dolphi86 [110]

Contribution for Standard is $30 per unit and Supreme is $60 per unit, Thus if Fixed expenses are first divided between the two products on the basis of Contribution per unit, It can be calculated as below:

Fixed Expense Bifurcated on basis of Contribution per unit= 30:60

Which Comes to 1:2

Thus it will be bifurcated as $1200000 for Supreme and $600000 for Standard

Thus for Standard to break even it Requires to Sell the below no of units:

Break Even Point in units=\frac{Fixed Expense}{Contribution per unit}

Break Even Point in units=\frac{600000}{30}

Break even points in units=20000 units

7 0
2 years ago
Based on the spreadsheet below, which of the following is a true statement? a. The net cash flow is negative. b. The net cash fl
Afina-wow [57]

Answer:

c. The net cash flow is positive.

Explanation:

A net positive balance occurs when the total cash inflow exceeds total cash outflows.  Inflow is cash coming in, while outflow is cash leaving the business. In a business, sales represent cash inflows, while expenditure represents cash outflows.

In this case, the sales total to $1,600 while expenses are $1,490. The net cash flow is the difference between the inflows and the outflows. Here, the difference is a positive $110.

6 0
2 years ago
Read 2 more answers
Yvette buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street, intending to spend $50,000 on re
Inessa [10]

Answer:

c. forget the repairs and sell the house as it is for $250,000.

Explanation:

The best option from the shown is to foget about the repairs and directly seel it at $250,000 because that leaves her with a loss of $50,000 instead of a $60,000 loss on her money, that is the best option financially. Also as the time passes the plan for the creation of the landfill downstreet will become more and more known and the value could decrease more.

8 0
3 years ago
Other questions:
  • Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price
    8·1 answer
  • Paula tells her rental agent, Tom, not to violate the fair housing laws. Tom nevertheless wrongfully discriminates against a pro
    5·1 answer
  • Relationship between public and private sector in mixed economy?​
    14·1 answer
  • uppose that Rowan, Inc. builds a high-speed, magnetically powered transportation system from New York to Los Angeles, which is t
    11·1 answer
  • Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,0
    10·1 answer
  • If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally a. execute an integrated
    11·1 answer
  • Summarize how the Peer-to-peer payment process typically works?
    9·1 answer
  • Borrowing money to pursue an advanced degree makes sense if _____. a. you can earn a scholarship to pay for your educational cos
    14·1 answer
  • If an organization implemented only one policy, which one would it want to implement?
    9·1 answer
  • At a profit-maximizing output level, marginal revenue minus:_____
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!