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aivan3 [116]
3 years ago
13

.Grannis Corporation purchased land in order to construct a new factory . Expenditures incurred by the company were as follows:

purchase price, $45,000;broker's fees, $8,000; accrued real estate taxes, $2,000; demolition of an old building on the property, $2,700; grading, $1,500; excavation costs for the building, $2,000; paving the parking lot, $15,000; lighting in the parking lot, $5,000. What is the amount that should be recorded in the Land account?
Business
1 answer:
katovenus [111]3 years ago
6 0

Answer:

The amount recorded in the Land account is $61,200    

Explanation:

The cost of acquisition/purchase of a landed asset includes all the normal, reasonable and necessary costs incurred in obtaining the land and getting it ready for use. These cost includes the price of the land, the legal fees, title fees, taxes, excavation costs etc. On the other hand, cost of improvements on the land are recorded on improvement on asset accounts, where depreciation is put in consideration when computing cost. This is separate from acquisition cost because, there is no depreciation on a land. The cost is calculated as follows:

purchase price = $ 45,000

broker's fees    = $   8,000

accrued taxes  = $    2,000

demolition        = $    2,700

grading             = $    1,500

excavation       =  $    2,000

Total                 =  $ 61,200

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Wonk is a unique furniture company that design, builds, and retails in Brooklyn, NY. You can customize your design with creative
Andrew [12]

Answer:

Make-to-order manufacturing.

Explanation:

Different Production Types:

-Make to Stock

-Make to Order (MTO)

MTO is a production approach where products are not built until a confirmed order for products is received. Customers highly customized requests can be satisfied and reconnect the value chain to the customer.

Process characteristics:

-Each order is specific, cannot be stored in advance

-Process manger needs to maintain sufficient capacity

-Variability in both arrival and processing time

-Role of capacity rather than inventory

7 0
3 years ago
A company has two departments, A and B, that incur delivery expense. An analysis of the total delivery expense of $9,000 indicat
DENIUS [597]

Answer:

$5,800; $3,200

Explanation:

Calculation to determine The delivery expenses that should be charged to Dept. A and Dept.

Dept. A and Dept. B

Direct expenses $1,000 $0

Indirect expenses $4,800 $3,200

[$60%*($9,000-$1,000)=$4,800]

[$40%*($9,000-$1,000)=$3,200]

TOTAL $5,800 $3,200

Therefore The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:$5,800 $3,200

6 0
2 years ago
Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential
lisabon 2012 [21]

Answer: d.an annual report for external regulators such as the SEC

Explanation:

A managerial accountant is someone who records and analyzes the financial information for an organization. The data analysed will then be used to form financial decisions which can help the organization's growth.

Managerial accountants prepared ls financial information for internal reporting and not external reporting. Therefore, of the options given, the managerial accountants can prepare all the reports except the annual report for external regulators such as the SEC.

5 0
3 years ago
Kara believes that by pushing poor countries to produce exports instead of food and goods for their own people, they are forced
ira [324]

Answer:

Dependency theory

Explanation:

Kara believes that by pushing poor countries to produce exports instead of food and goods for their own people, they are forced to rely on rich nations for much of what they need. She suggests that markets should be replaced with government-directed economic policies. Kara is arguing in a way that reflects <u>Dependency theory.</u>

Dependency theory: It is a theory to understand the inequality of growth of all nation. As per theory, the underdeveloped countries offer cheaper labor and raw material to the developed nation, who sell the costlier finished goods to the underdeveloped nation, which again supress the economy of under developed nation, so it continue to have vicious cycle and gap get widen between rich and poor countries.

In the given case; Kara have introduced Dependency theory as she poor countries to produce exports instead of food and goods for their own people, they are forced to rely on rich nations.

8 0
3 years ago
In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when c
Fofino [41]

Answer:

Since Tax Payable is $940000 @ 40%, Taxable income will be:

= $940,000 × (1/40%)

= $2,350,000

Only Temporary difference is Rent $490,000, which is being recognized for tax but not for Books.

Hence Pre-Tax Accounting income will be:

= $2,350,000 - $490,000

= $ 1,860,000

Therefore, Journal Entry will be:

Income Tax Expense A/c (1,860,000 × 40%)  Dr. $744,000

Deferred Tax Asset A/c  (490,000 × 40%)      Dr. $196,000

To Income Tax Payable                                                             $940,000

(To record income taxes for 2018)

6 0
2 years ago
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