Answer: $170,000
Explanation:
According to the historical cost concept, the original cost value of a asset (i.e. land) should be recorded in the books. The original cost refers to the cost of a asset at the time of purchasing. As per the principle of historical cost, assets are always recorded as a original cost or historical cost or acquisition cost.
But when a person sold the asset then he will consider the fair market value.
The answer is a.True
The cost of the fixed asset is already excluded from the net income. In this case, the rate of return can be computed by the total net income divided by the cost of the fixed asset. So that would be $200,000/$400,000. The rate of return would be 50%
Answer:
$3,676,100
Explanation:
in base year dollars, the building costed $2,340,000 / 1.923 = $1,216,849
if today's cost index is 3.021, then it should cost $1,216,849 x 3.021 = $3,676,100 to build the same building.
The cost index is used to adjust inflation, since costs tend to increase a little every year, you need some type of index to compare costs over different periods of time.
<span>Office of Management and Budget examines the cost of a bill. A proposed bill is given a cost forecast, and they conduct in-depth analysis while also ensuring the bill is legal. The Office of Management and Budget is also responsible for budget proposals.</span>
An account is a record of every transaction, whether it increases or decreases the value of a specific asset, liability, equity, revenue, or expense.
<h3>What is an account?</h3>
An Account is a systematic way to record all the necessary transactions relating to a specific asset, liability, equity, revenue, or expense.
An account contains all types of transactions, whether related to financial or non-financial.
Thus, an account records all types of transactions that will increase or decrease the value of the specific asset, liability, equity, revenue, and expense.
Learn more about the Account here:
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