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andrezito [222]
3 years ago
10

Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll

owing expenditures related to the acquisition: broker's commission, $49,600; title insurance, $2,300; and miscellaneous closing costs, $6,900. The warehouse is immediately demolished at a cost of $75,300 in anticipation of building a new warehouse.
Determine the amount Soccer Wholesale should record as the cost of the land.
Business
1 answer:
Elan Coil [88]3 years ago
6 0

Answer:

Cost of land= $1,124,100

Explanation:

<em>According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs 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. </em>

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.

However, remember that land is not depreciated because it has an infinite life span.

So using the historical cost principle the cost of the land

Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300=  1,124,100.00

Cost of land= $1,124,100

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3 years ago
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Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

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3 years ago
A manufacturer has an estimated practical capacity of 90,000 machine hours, and each unit requires two machine hours. The follow
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Answer:

Of the following factors, the manufacturer's production volume variance is most likely to have been caused by:

D. Temporary employment of workers with lower skill levels than originally anticipated.

Explanation:

a) Data and Calculations:

Estimated practical capacity = 90,000 machine hours

Machine hours per unit = 2

Estimated production units based on capacity = 45,000 (90,000/2)

                                                   Budgeted          Actual

Variable overhead =                 $200,000      $240,000

Actual fixed overhead =           $450,000      $442,000

Machine hours                             90,000           88,000

Units produced                            45,000           42,000

Estimated units to be produced based on standard machine hour

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3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
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Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

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950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

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