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elena-s [515]
3 years ago
13

Riverboat Adventures pays $450,000 plus $5,000 in closing costs to buy out a competitor. The real estate consists of land apprai

sed at $67,200, a building appraised at $158,400, and paddleboats appraised at $254,400. Compute the cost that should be allocated to the building.
Business
1 answer:
kkurt [141]3 years ago
8 0

Answer:

$150,150

Explanation:

Total fair value of all assets:

= Land + Building + Paddleboats

= $67,200 + $158,400 + $254,400

= $480,000

Building accounted for:

= Fair value of building ÷ Total fair value

= $158,400 ÷ $480,000

= 33%

Therefore, the building is 33% of the total fair value of assets.

Cost of acquisition of assets:

= Amount paid + Closing cost to buy out a competitor

= 450,000 + 5,000

= $455,000

Cost to be allocated to the building:

= Cost of acquisition of assets × Percent share in total fair value

= $455,000 × 33%

= $150,150

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York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 sh
Arisa [49]

Answer:

total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000

since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.

year

2015: $20,000 distributed to preferred stockholders

  • $0.25 per preferred stock
  • $0 to common stockholders

2016: $28,000 distributed to preferred stockholders

  • $0.35 per preferred stock
  • $0 to common stockholders

2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders

  • $0.375 per preferred stock
  • $0.85 per common stock

2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders

  • $0.375 per preferred stock
  • $1.60 per common stock

 

Dividends paid during the 4 year period:

Preferred stockholders received $108,000 in total

  • $1.35 per preferred stock

Common stockholders received $490,000 in total

  • $2.45 per common stock
3 0
3 years ago
An increase in the minimum wage​ ______. A. decreases employment and increases unemployment if it is set above the equilibrium w
fenix001 [56]

Answer:

The correct answer to fill the blank space will be option "C"

Explanation:

The relation between minimum wage and employment depends on the magnitude of the minimum wage relative to wage rate. Seein this we can say that an increase in the legal minimum wage will bring up the employment rate if it is set bellow the wage rate.

7 0
3 years ago
Read 2 more answers
Cost behavior analysis focuses on a.how costs react to increases in activity levels only. b.how costs react to changes in activi
arsen [322]

Answer:

b.how costs react to changes in activity level

Explanation:

Cost behavior analysis is the study of how operating cost varies with changes in production level. Management uses mathematical functions to understand how costs change relate to activity level. The costs in reference include fixed, variable, and mixed costs incurred in the manufacturing process.

Understanding cost behavior helps management in controlling and planning business costs. The analysis is useful in determining the cost, profit, volume relationship, including break-even points.

7 0
3 years ago
The Company is in the process of evaluating a new product using the following information: ∙ A new transformer has three product
Bad White [126]

Answer:

total loss for first year = ($96,000)

Explanation:

direct costs per 5,000 transformers = $55,000, or $11 per unit

indirect manufacturing overhead per 5,000 transformers = $45,000 or $9 per unit

destination charges per transformer = $2 each

customer service expenses = $0.40 per transformer

sales price:

year 1 = $20 x 15,000 = $300,000

year 2 = $24 x 15,000 = $360,000

year 3 = $28 x 15,000 = $420,000

total revenue = $1,080,000

total costs:

development costs = $45,000

setup costs = $15,000 x 3 per year x 3 years = $135,000

direct costs = $11 x 45,000 units = $495,000

manufacturing overhead costs = $9 x 45,000 = $405,000

sales and administrative costs = $2.40 x 45,000 = $108,000

total = $1,188,000

total operating life cycle loss = $1,080,000 - $1,188,000 = -$108,000

life cycle operating loss for first year:

total revenue = $300,000

- setup costs = $45,000

- direct costs = $165,000

- manufacturing overhead costs = $135,000

- S&A costs = $36,000

- 1/3 of development costs = $15,000

total loss = -$96,000

4 0
3 years ago
For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each e
Ksivusya [100]

Question Completion:

For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)

A. To record receipt of unearned revenue

B. To record this period's earning of prior unearned revenue

C. To record payment of an accrued expense

D. To record receipt of an accrued revenue

E. To record an accrued expense

F. To record an accrued revenue

G. To record this period's use of a prepaid expense

H. To record payment of a prepaid expense

I To record this period's depreciation expense

Journal Entries

Insurance Expense 1,900

Prepaid Insurance 1,900

Salaries Payable 3,900

Cash 3,900

Prepaid Rent 3,200

Cash 3,200

Salaries Expense 4,900

Salaries Payable 4,900

Interest Receivable 1,900

Interest Revenue 1,900

Cash 3,900

Accounts Receivable (from consulting) 3,900

Cash 5,900

Unearned Professional Fees 5,900

Cash 4,300

Interest Receivable 4,300

Rent Expense 8,000

Prepaid Rent 8,000

Interest Expense 6,300

Interest Payable 6,300

Depreciation Expense 1,300

Accumulated Depreciation 1,300

Unearned Professional Fees 1,900

Professional Fees Earned 1,900

Answer:

Journal Entries with appropriate descriptions:

Insurance Expense 1,900

Prepaid Insurance 1,900

G. To record this period's use of a prepaid expense

Salaries Payable 3,900

Cash 3,900

C. To record payment of an accrued expense

Prepaid Rent 3,200

Cash 3,200

H. To record payment of a prepaid expense

Salaries Expense 4,900

Salaries Payable 4,900

E. To record an accrued expense

Interest Receivable 1,900

Interest Revenue 1,900

F. To record an accrued revenue

Cash 3,900

Accounts Receivable (from consulting) 3,900

D. To record receipt of an accrued revenue

Cash 5,900

Unearned Professional Fees 5,900

A. To record receipt of unearned revenue

Cash 4,300

Interest Receivable 4,300

D. To record receipt of an accrued revenue

Rent Expense 8,000

Prepaid Rent 8,000

G. To record this period's use of a prepaid expense

Interest Expense 6,300

Interest Payable 6,300

E. To record an accrued expense

Depreciation Expense 1,300

Accumulated Depreciation 1,300

I To record this period's depreciation expense

Unearned Professional Fees 1,900

Professional Fees Earned 1,900

B. To record this period's earning of prior unearned revenue

Explanation:

Journal entries are usually recorded to adjust revenue and expenses to the accrual basis of accounting and to match expenses to the period's revenue and vice versa.  Short narrations are provided after recording each transaction.  The purpose is to provide some descriptions of the transaction so that it can be understood by another person reviewing the records.

4 0
3 years ago
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