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4 years ago

When can interest be included in the acquisition cost of a plant asset?

Business

1 answer:

hammer [34]4 years ago

7 0

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

You might be interested in

"flexible budget flexible budget:

ipn [44]

Answer:

The answer is: C) differentiates the budgeted costs for each sales level.

Explanation:

A flexible budget is a budget that is adjusted according to different sales levels. It is adjusted to include different costs that vary according to different level of activities. The budget will flex (or adjust) because it includes a variable rate per unit of activity, and not just one fixed total amount.

For example, when you calculate the total costs of producing a chair, you can elaborate a flexible budget considering variable costs in materials, direct labor and machine hours for every chair produced.

3 0

3 years ago

Sandhill Company deducts insurance expense of $234000 for tax purposes in 2021, but the expense is not yet recognized for accoun

LenaWriter [7]

Answer:

$242,800

Explanation:

Tax Base Accounting Base Temporary Difference

2021 Insurance Expense $234,000 0 $234,000

This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800

The journal entry will be;

Income Tax Expense Dr.$46,800

Deferred Tax liability Cr.$46,800

Therefore Income tax expense will be=$196,000+$46,800=$242,800

8 0

3 years ago

In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total var

Dimas [21]

Answer:

$200,000

Explanation:

Total cost = Fixed cost + variable cost

$200,000 = $100,000 + $100,000

Fixed cost is cost that do not vary with production. E.g. rent

If no production activity takes places, fixed cost would still be incurred.

Variable cost is cost that varies with production e.g. wages

If no production activity takes place, there would be no variable cost.

I hope my answer helps you.

5 0

4 years ago

Under what circumstances will increasing the dividend retention ratio increase the value of a stock?

lakkis [162]

Under ROE is Greater than Required rate of return will increasing the dividend retention ratio increase the value of a stock.

In finance, stock consists of the stocks of which ownership of a corporation or organization is divided. A unmarried proportion of the stock manner fractional possession of the organization in percentage to the overall number of stocks.

A inventory is a shape of protection that indicates the holder has proportionate possession within the issuing organization and is sold predominantly on inventory exchanges. corporations trouble stock to raise funds to perform their groups. There are two important forms of stock: commonplace and preferred.

Inventory way a percentage inside the ownership of a organisation. An example of inventory is one hundred stocks of Disney company.

Learn more about stock here:brainly.com/question/25818989
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7 0

1 year ago

(20%) problem 7: your uncle is trying to convince you join his research team at cern by offering you a summer job that pays a wa

Nimfa-mama [501]

Solution:

Expected hourly income in $US = rate * hourly income in Euro

= 1.2903 * 13 = $16.7739

Time taken from uncle's house to lab = Distance /Speed

Distance is 8.5 km

Speed is 1mile in 5 minutes

Hence converting mile in Kilometer = 1.609344 km in 5 minutes

distance traveled in an hour = 1.609344 *12 =19.312128

Time = 8.5/19.312128 = 0.44013792783 hours = 26.408 minutes

Capacity =13 US gallons

1US gallon = 3.78541 litre

Hence 13 gallons = 13 * 3.78541

=49.21033 litres

Gasoline = 1.41 Euro /litre

= 1.2903 * 1.41 = 1.819323 $ /litre

Hence 1 litre = 1.819323 dollar

1 gallon = 3.78541 litre = 6.88688347743 dollar

Hence price = 6.88688347743 dollar /gallon

we can travel 20 miles in 1 gallon

= 1.609344*20 km

capacity of tank =13 gallons

total distance that can be traveled in 13 gallons = 1.609344*20*13 km = 418.42944 km

days that can be traveled = 418.42944/8.5 = 49.2269929412 days = 49 days

3 0

4 years ago