Answer:
a. $84,300.
Explanation:
IAS-16 that deals with Property, Plant, and Equipment requires entities to capitalize those costs that needs to be incurred to bring the asset to its intended use or to get control of the asset in this case. Here such costs include:
- Purchase Price, Commission, Insurance, and Back Taxes.
Property Taxes due for the current year should be recognized in the Statement of Profit or Loss. This Amount of $1,000 is not capitalized because it is not necessary to pay it to gain control of the land. On the other hand, the back taxes must be paid because the company won't be allowed to transfer the land if there are any unpaid taxes, not of this year.
So, the Capitalized Cost of Land is $84,300 (75,000 + 4,500 + 800 + 4,000).
Answer:
Step 1: Identify the decision. You realize that you need to make a decision. ...
Step 2: Gather relevant information. ...
Step 3: Identify the alternatives. ...
7 STEPS TO EFFECTIVE.
Step 4: Weigh the evidence. ...
Step 5: Choose among alternatives. ...
Step 6: Take action. ...
Step 7: Review your decision & its consequences.
Answer:
The book value of a share of Simple stock is $18 per share
Explanation:
The computation of the book value of a share is shown below
Book value per share = (Total equity) ÷ (number of shares)
where,
Total equity = Total issued shares value + retained earnings
= $25,000 + $47,000
= $72,000
And, the number of shares is 4,000 shares
Now put these values to the above formula
So, the value would be equal to
= $72,000 ÷ 4,000 shares
= $18 per share
The statement, return on assets is computed as net income divided by total assets, is true.
Return on assets (ROA) is a profitability ratio, which measures that how efficiently a company uses the assets it owns to generate profits. If a company wants increase the return on assets then the company tries to increase the profit margin.
So the return on asset of a company is computed by dividing the net income earned by the company by average total assets employed by the company. Thus, it measures how much percentage of profit the company is generating in respect to its assets.
Hence, the higher the percentage of return on assets, the better it is.
To learn more about return on assets here:
brainly.com/question/14969411
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