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Llana [10]
4 years ago
14

If a company is considering the purchase of a parcel of land that was acquired by the seller for $86,000 is offered for sale at

$152,000, is assessed for tax purposes at $96,000, is considered by the purchaser as easily being worth $142,000, and is purchased for $139,000, the land should be recorded in
the purchaser's books at:__________.
Business
1 answer:
Lerok [7]4 years ago
6 0

Answer:

$139,000

Explanation:

The value of an asset is recorded in the book as the price at which it was acquired. The cost of the land will be recorded as the price which it was paid for or the purchase price.  

In asset acquisitions, the value of land includes the purchase price plus all other relevant expenses such as legal fees, commissions, and survey fees. Discounts received are deducted from the purchase price before the price is recorded in the books. An organization will value and depreciate its assets based on the price it purchased them.

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4 0
3 years ago
Use the three-step demand-supply analysis discussed in class to analyze changes to the equilibrium price, and quantity in the ca
Ghella [55]

A new computer chip affects the supply curve only.

Demand-supply is an economic version of price determination in a market. It postulates that preserving all else identical, in an aggressive market, the unit price for a specific appropriate, or other traded item which includes hard work or liquid financial property, will range till it settles at a point in which the quantity demanded (at the modern price) will same the quantity supplied (on the modern-day price), ensuing in an economic equilibrium for rate and quantity transacted.

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7 0
2 years ago
A buyer has decided to offer $335,000 for a home that she really likes. The bank will loan her 80% of the purchase price for 30
RUDIKE [14]

Answer:

We have:

Amount of principal = $268,000

Interest payment = $1,522.24

Explanation:

These can be calculated as follows:

Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000

Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24

Therefore, we have:

Amount of principal = $268,000

Interest payment = $1,522.24

5 0
3 years ago
A new children's hospital is being built in Springfield, and Friendly Corp. has publicly pledged that it will contribute $5 mill
frozen [14]

Answer:

Following are the solution to this question:

Explanation:

By IAS 1 — Annual Report presentation, 3 concepts were all first consideration, its second consistency as well as the third reporting framework related to investment based that can be define as follows:

  • Full accrual basis: its IAS 1 allows an organization to compile all financial reports through an accounting standards basis, with exception of working capital details. Even more cash accounting is a method to record profit or expenditure account balances when they are made.
  • All financial statements throughout the United States were repayment-based. Any cost will not be reported underneath the accrual system once it is accruing. It implies that recognition is irrelevant whenever a company pays cash to pay an expense.
  • Thus the allocation of 2 million to the year that the Pleasant Corp. was created must be listed as just an expense. As well as the remaining payment amount must be listed as expenses once it is paid. Future interventions throughout the current FY should not be published.
  • Also, notice the payment incoming to ensure that you will be prepared when due, but just don't join the way of supporting using the cash method. It simply reports an expense of what you are pay if you make a payment when you choose to use the cash method. Consequently, until the next date, you would not modify your reporting, which is also known as journal entries.
5 0
3 years ago
Penn Inc., a manufacturing company, owns 75 percent of the common stock of Sell Inc., an investment company. Sell owns 60 percen
ratelena [41]

Answer:

Option B-Consolidation used for both Sell and Vane.

Explanation:

Both of the companies must be consolidated because the parent company controls both of the company and according to International Financial Reporting Standard, the companies that the parent company directly controls (75% ownership of Sell Inc. and 75% control) or indirectly controls (75%*60%= 45% ownership of Vane Inc. and 60% control of the company) must be consolidated. Here Penn Inc. controls both the subsidairies Sell Incorporation and Vane Incorporation, so they must be consolidated to group accounts.

4 0
3 years ago
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