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
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

You might be interested in
Faughn Corporation has provided the following data concerning manufacturing overhead for July:
creativ13 [48]

Answer: D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

Explanation:

The Manufacturing overhead applied is less than the actual manufacturing overhead incurred by:

= 79,000 - 69,000

= $10,000

Manufacturing overhead is therefore underapplied as the amount applied is too low to cover the amount incurred.

The Cost of Goods sold after closing out is:

= Cost of goods sold before closing out + Underapplied manufacturing overhead

= 243,000 + 10,000

= $253,000

6 0
3 years ago
What is an example of a general safety hazard?
Ket [755]

Answer:

poorly maintained equipment

5 0
2 years ago
Read 2 more answers
The theory of purchasing power parity assumes that.
Maurinko [17]

PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

<h3 /><h3>What is purchasing power parity?</h3>

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

Learn more about purchasing power parity here:

brainly.com/question/2286004

#SPJ1

5 0
2 years ago
How would one establish a petty cash fund for $500?
Sindrei [870]

Answer:

Explanation:

It's B

7 0
2 years ago
if a farm has nfio of $100,000, and an opportunity cost total of $25,000, what is the farm's return to equity? (round to the nea
tiny-mole [99]

The return to equity is $75000

Another form of financial ratio is the return on equity. Financial ratios are data taken from a firm's financial statements and used to predict and draw specific conclusions about the organization.

Relative return on equity is a tool used to forecast a company's profitability. It evaluates how effectively people employed in any business have used the money that has been invested.

Since the farm has Nfio of $100,000 and an opportunity cost total of $25,000.

Therefore,

Return on equity -

Net Farm Income from Operations - Opportunity cost

= 1,00,000 - 25,000

= 75,000

Read more about a return to equity on:

brainly.com/question/28500740

#SPJ4

7 0
1 year ago
Other questions:
  • In its first year, Raydine Inc. reported sales revenue of $1,300,000, net income of $200,000, and paid dividends of $26,000 on c
    5·1 answer
  • Loggers are much likely to supply wood to the market if property rights are enforced. In the presence of market failures, public
    10·1 answer
  • Replenishment lead time is _________.a. The time between placing an order and receiving the materials. b. The amount of time the
    9·1 answer
  • Malcolm consults his horoscope to determine what stocks to buy; miles studies the financial section of the paper and follows the
    12·1 answer
  • Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Acc
    14·1 answer
  • You are a sales director for a company and have noticed employees are showing up towork dressed inappropriately. customers have
    10·1 answer
  • The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125.
    9·1 answer
  • A five-year security was purchased two years ago by an investor who plans to resell it. The security will be sold by the investo
    12·1 answer
  • A company is about to go public. it announces that it plans to pay a $1 per share dividend in its first year of existence and 2$
    6·1 answer
  • A comparable property sold 17 months ago for $115,000. If the appropriate adjustment for market conditions is 0.30% per month (w
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!