Based in the historical cost principle, the total cost of
the land would be the summation of all cost, either direct or indirect.
Therefore it would be:
Cost of Land = $90,000 cash + $5,000 commission + $7,000
demolishing
Cost of Land = $102,000
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Answer:
The below multiple choices are missing:
a.
the interest rate and investment would rise.
b.
the interest rate would rise and investment would fall.
c.
the interest rate and investment would fall.
d.
the interest rate would fall and investment would rise.
Option B is the correct answer, the interest rate would rise and investment would fall
Explanation:
The rationale for interest rate increase is that the removal exemption means that investor returns on the investment whose return was previously exempted has now reduced,hence investors would demand fro compensation for such reduction by expecting increase in the rate of return.
Also, the some investors would terminate their existing investments so as to avoid paying more in taxes on investment returns thereby reducing level of investment.
The correct option is - 3 ( "Money spent last month repairing a damaged front fender" )
<u>Explanation:</u>
Sunk cost means the cost that has been already incurred in the past and cannot be recovered. This implies that sunk costs should be not be considered in future decision making of the project, because these are the cost that can not be changed with under taking the project or not. The significant aspect about this costs is that they shouldn't be allowed to influence subsequent decisions.
With the theatre ticket example, there's an opportunity to leave the theatre at the intermission and spend the rest of your evening doing something else more enjoyable. If you don't like the play then you might decide to leave, but the sunk cost of the ticket shouldn't influence your decision to stay or leave.
Answer:
Punishment.
Explanation:
In this scenario, Blake racked up three safety violations in one month and was taken off the construction crew and put in the office, meaning he was no longer eligible for overtime. He pled with his boss, saying he needed the money for rent. Citing that Blake's financial situation was not a concern of the company, he was put in the office until he could demonstrate that safety was a priority. This illustrates punishment.
Punishment can be defined as an act of imposing a penalty or consequences on an individual or group of people for flouting rules, guidelines or instructions and any other wrongdoing.
<em>Generally, punishments are used as a moral tool to discourage wrongdoing or unacceptable behaviors being exhibited by people and to serve as a deterrent to others. </em>