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timofeeve [1]
3 years ago
5

Shelton Co. purchased a parcel of land six years ago for $866,500. At that time, the firm invested $138,000 in grading the site

so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $50,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $918,000. What value should be included in the initial cost of the warehouse project for the use of this land?
Business
2 answers:
Nadya [2.5K]3 years ago
6 0

Answer:

$918,000 should be included  in the initial cost of the warehouse project.

Explanation:

Capitalised cost of an asset includes all the costs incurred to make the asset operational or usable.

In this question warehouse project incurred many expense to build the warehouse, as all of these expenses are sunk cost and will not be considered for the warehousing project.

We will only consider the current value of the land for this purpose which is $918,000.

nikklg [1K]3 years ago
5 0

Answer: $918,000

Explanation: Since Shelton Co is considering building a warehouse on the site because the rental lease is expiring then in  evaluating the new project all the relevant cash flows must be considered in  the protect evaluation. Market value of the land used for constructing the building is an opportunity cash flow and so must  be considered.  The Relevant cost of opportunity for land will be its fair value.

Therefore ,the initial cost cost of the warehouse project for the use of this land is $918, 000.

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Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Per
Flauer [41]

Answer : R11 & U44

Explanation:

Considering the aforementioned data on the small set of products that comprise the specialty repair parts division. After performing ABC analysis on the data. I would suggest R11 and U44 for the firm keep the least control.

3 0
3 years ago
Compute conversion costs given the following data: direct materials, $361,300; direct labor, $195,300; factory overhead, $216,70
Radda [10]

Answer:

a. $412,000

Explanation:

Conversion cost is the combination of direct labor and manufacturing overhead which directly or indirectly are necessary to produce a product other than the direct raw materials.

We know,

<em>Conversion costs = Direct Labor + Manufacturing Overhead</em>

Here,

Manufacturing overhead = Indirect material + Indirect Labor + Indirect overhead (including variable and fixed overhead)

Given,

Direct labor = $195,300

Manufacturing overhead = Factory overhead = $216,700

Selling expenses will not be included because it is not a direct or indirect overhead expense.

Therefore,

<em>Conversion costs = </em>$195,300 + $216,700

<em>Conversion costs = </em>$412,000

8 0
3 years ago
Your sister is in law school. She believes that laws that prohibit discrimination for potential LGBTQ employees best reflect wha
Marta_Voda [28]

Answer:

Sociological School of jurisprudence.

Explanation:

The Sociological School of Jurisprudence believes that both laws and societies are closely related to each other. It states that laws are social phenomenons, therefore they evolve as societies evolve. Laws have a major impact on how societies function, but the laws themselves originate from societies' needs.

For example, less than 100 years ago homosexuality was illegal in most of the world and homosexuals would be punished with jail time or even killed in some countries. Now western societies (North and South America, most of Europe and Australia + NZ) have changed and accept homosexuality as something normal. But there still exist societies where homosexuals are criminals and are still sent to jail or killed.

4 0
3 years ago
Thirty percent of households say they would feel secure if they had​ $50,000 in savings. You randomly select 8 households and as
marin [14]

Answer: a) 0.04667544

b) 0.01129221

c) 0.98870779

Explanation:

Binomial probability formula :-

P(x)=^nC_xp^x(1-p)^x, where P(x) is the probability of getting success in x trials, n is the total number of trials and p is the probability of getting success in each trial.

Given : The probability of households say they would feel secure if they had​ $50,000 in savings = 0.30

Total number of households selected = 8

a) The probability that the number that say they would feel secure is exactly​ five will be :-

P(5)=^8C_{5}(0.30)^5(0.70)^3\\\\=56(0.3)^5(0.7)^3=0.04667544

b) The probability that the number that say they would feel secure is more than​ five :-

P(x>5)=P(6)+P(7)+P(8)\\\\=^8C_{6}(0.30)^6(0.70)^2+^8C_{7}(0.30)^7(0.70)^1+^8C_{0}(0.30)^8(0.70)^0\\\\=28(0.30)^6(0.70)^2+8(0.30)^7(0.70)^1+(0.30)^8\\\\=0.01129221

c) The probability that the number that say they would feel secure is at most five :-

P(x\leq5)=1-P(x>5)\\\\=1-0.01129221=0.98870779

7 0
3 years ago
Eastwood Enterprises offers horseback riding lessons. During the month of June, the company provides lessons on account totaling
olya-2409 [2.1K]

Answer:

$4,780    

Explanation:

The computation of the amount of operating cash flow that received from customers in June is shown below:

= Received the amount with respect to his account + received an amount from customers who were provided lessons in May

= $4,300 + $480

= $4,780    

The amount of providing lessons is irrelevant. Hence, ignored it

6 0
3 years ago
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