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Gala2k [10]
3 years ago
14

Acquisition of Land and Building On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,

000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period are: Demolition of old building$ 10,000 Architect's fees20,000 Legal fees for title investigation and purchase contract4,000 Construction costs625,000 Edwards sold salvaged materials resulting from the demolition for $2,000. Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively
Business
1 answer:
Kitty [74]3 years ago
5 0

Answer:

Cost of Land is $104,000, cost of building is $653,000. The total cost is $757,000

Explanation:

The cost of the building will include the purchase price of the land and building and every other cost incurred in the process of making the land and building available for use.

However, every amount realized from the process will also be deducted from the cost of the land and building. To separate the cost of land from the cost of the building, we must identify the cost attributable to each of them

As such, the recorded cost on land

= $100,000 + $4,000

= $104,000

and cost of building

= $10,000 + $20,000 + $625,000 - $2,000

= $653,000

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The heading goes at the very top of the page, along with your name and address. So heading is correct. Good luck.

3 0
2 years ago
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Equilibrium price is $8 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 150 units of output. At
Ghella [55]

Answer:

Shut down

$1650

$1500

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

in the shut run, a perfect competition should shut down if average variable cost is greater than price. this is the case for this firm $10 is greater than $8.

total fixed cost = average fixed cost x quantity produced = $11 x 150 = $1650

Total variable cost = average variable cost x quantity produced = $10 x 150 = $1500

4 0
2 years ago
Leah deposited $50,000 in the bank. Three years later, she borrowed $40,000 for a new truck. From this description, which is the
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B. leah did not have to provide collateral

5 0
2 years ago
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Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise to Malone for $150,000. At
elena-14-01-66 [18.8K]

Answer:

$18,000

Explanation:

Calculation to determine what The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:.

Using this formula

Intra-Entity Gross Profit =(Transfer Price × Percentage of Bernard's GP) × Intra-Entity Transfers Remaining in Ending Inventory

Let plug in the formula

Intra-Entity Gross Profit=($150,000×30% )×40%

Intra-Entity Gross Profit=$45,000×40%

Intra-Entity Gross Profit=$18,000

Therefore The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:$18,000

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2 years ago
A ____________is anything offered to a market by the business to satisfy needs, could include physical products or intangible se
andre [41]

Answer:

Product is the correct answer.

Explanation:

7 0
2 years ago
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