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
oee [108]
3 years ago
14

On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 in cash and signed a 6% note requiring the co

mpany to pay the remaining $5 million plus interest on December 31, 2022. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Laramie record the purchase of land
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

The amount Laramie should record the purchase of land is <u>$6.2 million</u>.

Explanation:

The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.

The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.

If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.

Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.

From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.

Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.

You might be interested in
You must pick one of two​ wagers, for an outcome based on flipping a fair coin. 1. You win ​$440 if it comes up heads and lose ​
UkoKoshka [18]

Answer:

See Below

Explanation:

Expected value is the sum of the products of the probability and payoff of each.

<u>Wager 1:</u>

probability of heads and tails, both is 0.5

Win = 440

Loose = 110

So,

Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165

<u>Wager 2:</u>

Similar to wager 1

Win = 770

Loose = 220

So,

Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275

2nd wager is better, in this sense.

4 0
3 years ago
he units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 22 units @ $29 $638 June 16 Purc
Mama L [17]

Answer:

Thus, difference in gross profit = $144 + $144 = $288

Profit as per FIFO is higher than profit as per LIFO

Explanation:

In the given case, as per both the methods computation shall be as follows:

Date                    Quantity                   Rate              Amount

Mar 1                     22 units                   $29                 $638

Jun 16                   31 units                    $30                 $930

Nov 28                 41 units                     $37                 $1,517

Total                     94 units                                           $3,085

Closing units = 18

That means sales = 94 - 18 = 76 units

Thus as per LIFO cost = 41 units @ $37 + 31 units @ $30 + 4 units @ $29

= $2,563

Closing stock = 18 units @ $29 = $522

As per FIFO cost = 22 units @ $29 + 31 units @ $30 + 23 units @ $37 = $2,419

Closing stock = 18 units @ $37 = $666

Thus, difference of closing stock = $666 - $522 = $144

Profit as per FIFO is higher by $144

Cost is higher in LIFO by $2,563 - $2,419 = $144

Thus, difference in gross profit = $144 + $144 = $288

6 0
3 years ago
If you stare at a red patch and then look at a red apple, will your experience of the redness of the apple be stronger or weaker
Mashutka [201]
<span>If you stare at a red patch and then look at a red apple, your experience of the redness of the apple will be  weaker. 
</span>The reason is because staring at red patch fatigues red portion of red-green channel. Hering’s opponent-process model predicts this situation. The theory was <span>first developed by Ewald </span>Hering<span>.</span>
3 0
3 years ago
Read 2 more answers
Your father is about to retire, and he wants to buy an annuity that will provide him with $84,000 of income a year for 25 years,
Gekata [30.6K]

Answer:

reach us to get instant help with your assignments https://toplivewriters.com

Explanation:

3 0
3 years ago
Which of the following marketing budgets is based on marketing tasks? A. Bottom-up B. Customer-mix C. Percent-of-sales D. Top-do
Hunter-Best [27]
<h2><u>Answer:</u></h2>

The correct option is A (Bottom-Up)

<h3><u>Explanation:</u></h3>

As indicated by Theoretical Synthesis, "when an upgrade is displayed short and lucidity is unsure that gives an ambiguous boost, discernment turns into a best down methodology." Conversely, brain research characterizes base up handling as a methodology wherein there is a movement from the individual components to the entirety.  

Bottom Up Strategic Management. With a best down key methodology, the official group of the business sets up plans and objectives, and afterward imparts that system to center supervisors, who at that point move toward becoming entrusted with executing that procedure through general population representatives.

8 0
3 years ago
Other questions:
  • Helen Ashley is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. I
    7·1 answer
  • Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. A week later, Floyd assig
    9·1 answer
  • Which of the following would a macroeconomist consider as investment? A. Marisa purchases a bond issued by Proctor and Gamble Co
    15·1 answer
  • ________ refers to a process of negotiations between workers and managers.
    11·1 answer
  • Suppose the central bank in your country has stability of the GDP growth rate as its primary goal. Faced with a choice of having
    10·1 answer
  • Messing company has an agreement with a third-party credit card company, which calls for cash to be received immediately upon de
    11·1 answer
  • What is the Total expected equity financing for Amazon’s purchase of Walmart, at the assumed 50-50% equity and debt financing de
    8·1 answer
  • Do you feel it is easier or harder to deliver a presentation online versus face to face? Why?
    6·1 answer
  • When a manufacturer directs the promotional mix to final customers to gain their attention and build demand for the product, it
    6·1 answer
  • When employees deliberately work at a slower pace than their capabilities, it is called:_______
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!