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Ivahew [28]
3 years ago
14

Debt is frequently incurred when plant assets are acquired. For example, debt may be incurred on the purchase of plant assets. D

ebt may also be incurred during the construction of plant assets. How is the interest in these two cases treated for financial reporting?
Debt for purchase Debt during construction

A. capitalize capitalize
B. expense expense
C. capitalize expense
D. expense capitalize
Business
1 answer:
Olenka [21]3 years ago
6 0

Answer:

A. capitalize capitalize

Explanation:

All the expenses incurred to make the asset usable are capitalized and those expenses become the part of cost of that assets for which that are incurred. Interest on debt to purchase an asset and in case to construct the asset both are capitalized, because these expenses are essential to make assets usable for the business.

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Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 a
Murrr4er [49]

Answer:

the amount deferred by tower as intra-entity gross profit: 3,240

Explanation:

120,000 sales with a cost of 66,000

remains at year-end:

 24,000 with a cost of:  66,000/120,000 x 24,000 = 13,200

gross profit: 24,000 - 13,200 = 10,800

For this rgoss profit we are going to deferre the 30%;

10,800 x 30% =  3,240

4 0
3 years ago
Business Manager HeatherGuite expects her employees to be displeased or even hostile when she announces a new work schedule that
anzhelika [568]

Answer:

explain all background information first

Explanation:

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Heather must deal with her employees' tolerance levels, and their is a difference between absolute and relative tolerance. Absolute tolerance refers to tolerating other people's behavior just because you are polite and you don't want to cause more trouble, and relative tolerance refers to tolerating a bad situation because you know that there is valid cause for it. Heather must rely on her employees' relative tolerance.

8 0
3 years ago
An example of an externality is the impact of
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Increases in health care costs on the health of individuals in society.
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tekilochka [14]
Interesting thing you’re doing lol
6 0
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One reason some economists doubt that patent protection encourages innovation is that economic studies show that inventors recei
makkiz [27]

Answer:

one-third to one-half; already had patents

Explanation:

One reason some economists doubt that patent protection encourages innovation is that economic studies show that inventors receive only one-third to one-half of the total economic value of their inventions in countries that already had patents.

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