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AVprozaik [17]
3 years ago
12

Suppose that a firm has purchased some land for $1,250,000 a year ago to develop a new outlet, and the land now would sell $2,00

0,000. They are now evaluating the outlet and that it would cost them $12,000,000 to build the outlet, $150,000 to purchase needed equipment, $15,000 to transport and install the equipment, and $500,000 in inventory ($250,000 coming from one of their warehouses). What would you estimate its initial investment outlay to be?
Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

$13,915,000

Explanation:

Land-cost              $1,250,000

Construction cost $12,000,000

Equipment cost(150,000+15,000) $165,000

Inventory                          $500,000

Total initial investment outlay $13,915,000

Please note that fair value of land is irrelevant as the land was purchased for the outlet being set up and not for any other project.

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slavikrds [6]

Answer:

meeeeeeeeeeeeeee

Explanation:

3 0
3 years ago
Read 2 more answers
In 2022, internal auditors discovered that Axel Corp., had debited an expense account for the $2,090,000 cost of a machine purch
antoniya [11.8K]

Answer:

Debit Depreciation expense $570,000

Credit Accumulated depreciation $570,000

<em>(To record the accumulated depreciation for 3 years)</em>

Explanation:

Using a Straight-line depreciation method, depreciation expense = (Cost - Salvage value)/Estimated useful life

Depreciation expense = $2,090,000 / 11 years = $190,000 yearly

We would assume that the internal auditors detected the error at the beginning of Year 2022, so the accumulated depreciation for 3 years (Jan 2019 - Dec 2021) would be $190,000 x 3 years = $570,000

The following correctional entries will apply:

Debit Fixed asset - Machine $2,090,000

Credit Expense account $2,090,000

<em>(To appropriately record the purchase of machine)</em>

The required adjustment fot the accumulated depreciation is recorded above under the answer section.

3 0
3 years ago
Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributi
arsen [322]

Answer:

$21000

Explanation:

To determine Gray’s tax basis  for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s  distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and  deduction items.

Gray’s beginning basis = $5,000  

Gray’s 50% distributive share of ordinary  income = 50% × $20000 = $10000

Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and  

portfolio income = 50% × $4000  = $2,000

Therefore, the ending basis of  Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000

6 0
3 years ago
Breaking rules at a factory could mean all of the following, except
Margaret [11]
Breaking rules at a factory could mean all of the following except demotion.
3 0
3 years ago
In many cases, it is reasonable to refer to the ________________ as the price.
Sladkaya [172]

Most time, it is reasonable to refer to the opportunity cost as the price because it entails the benefit of the foregone good or service.

<h3>What is an opportunity cost?</h3>

It refers to a value of what is rejected in order to perform the chosen alternative, that is, the value one have to give up to buy what you want in terms of other goods or services.

Therefore, it is sometimes reasonable to refer to the opportunity cost as the price because it entails the benefit of the foregone good or service.

Read more about opportunity cost

<em>brainly.com/question/1549591</em>

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6 0
1 year ago
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