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pentagon [3]
3 years ago
10

A company purchases a remote site building for computer operations. The building will be suitable for operations after some expe

nditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and recarpeted and there will also be some plumbing work done. Which of the following statements is true?
a) The cost of the building will not include the repainting and recarpeting costs.
b) The cost of the building will include the cost of replacing the roof.
c) The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.
Business
1 answer:
KIM [24]3 years ago
3 0

Answer:

b) The cost of the building will include the cost of replacing the roof.

Explanation:

As for the information provided,

We know that the capital expenditure is capitalized and that the revenue expenditure is provided in income statement.

The capital expenditure is added in the cost of fixed assets and then depreciated as part of it.

The entire replacement of roof will be a huge part of consideration of building, and is capital in nature. Thus, it shall be part of cost of building.

Remaining all expenses are not capital in nature.

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During 2012, Walker Corporation acquired 500 shares of Wychek stock at $30 per share. Walker Corporation accounted for the stock
leva [86]

Answer: B.Unrealized Increase in Value of Available-for-Sale Securities Equity of $7,500

Explanation:

Walker acquired the 500 shares at a price of $30 in 2012. At the end of 2012 however, the shares were worth $22.50.

At the end of 2013, it is stated that the shares are now worth $37.50 meaning they increased in value.

The value of the increase is therefore the difference between the most recent previous price and the new price,

= 500 shares * ( 37.50 - 22.50)

= $7,500

Available for Sale Securities Account should therefore see an increase of $7,500 because of the increase in price from the end of 2012 to the end of 2013.

It is worthy of note that at the end of 2012, the account decreased by the difference between the purchase price of $30 and the end of 2012 price of $22.50. This is why at the end of 2013, the price used as the previous price was $22.50.

7 0
3 years ago
Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler
earnstyle [38]

Answer:

Answer for the question:

Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change. Suppose rRF = 4%, rM = 8%, and bUT = 2.2. Under current conditions, what is rUT, the required rate of return on UT Stock?

Round your answer to two decimal places. 12.8 %

Now suppose rRF increases to 5%. The slope of the SML remains constant. How would this affect rM and rUT?

I. rM will increase by 1% and rUT will remain the same.

II. Both rM and rUT will decrease by 1%.

III.Both rM and rUT will remain the same.

IV. Both rM and rUT will increase by 1%.

V. rM will remain the same and rUT will increase by 1%.

Is given in the attachment.

Explanation:

4 0
3 years ago
Place a number, 1 through 7, in front of each of the following balance sheet categories to designate the order in which they are
blagie [28]

<u>Explanation:</u>

Classified balance sheet presents information about assets,liabilities and shareholder's equity of an entity.Order in which they are presented is as follows"

  1. Current assets-it includes cash and cash equivalents like prepaid expenses,inventories,assets held for sale.
  2. Long term investments-it includes investment made in other companies
  3. Property,plant and equipment-it includes all the fixed assets.
  4. Intangible assets-it includes assets which cannot be touched like goodwill.
  5. Current liabilities-it includes trade and other payables, accrued expenses,liabilities held for sale
  6. Long term liabilities-It includes long term loans,Deferred tax liabilities.
  7. Stockholder's equity-It includes share capital.additional paid up capital,retained earnings.

3 0
3 years ago
If a licensee has received any commission in conjunction with a transaction in which the license law was violated, that licensee
Julli [10]

Answer: The correct answer is "D. 4".

Explanation: If a licensee has received any commission in conjunction with a transaction in which the license law was violated, that licensee could be held liable for up to <u>4</u> times the amount of the commission, in addition to having their license suspended or revoked.

Receiving a commission on transactions that violate the license law is prohibited.

4 0
3 years ago
What publication can give you an idea of how administrative jobs are going to change in the future?
bogdanovich [222]

Answer: B. Occupational Outlook Handbook

  • The Occupational Outlook Handbook is published by the United States Department of Labor's Bureau of Labor Statistics.
  • It provides information regarding the nature of work, training and education required for a particular job and earnings and job outlook for a wide range jobs and sectors in the United States.
  • It is published biennially and was first published in 1948. The latest edition is the 2018-19 handbook.
4 0
3 years ago
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