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3 years ago

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

Business

1 answer:

hammer [34]3 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

What is a source of financial vulnerability for people in late adulthood?

nlexa [21]

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Below are the choices that can be found elsewhere:

a)   Gambling
   b)   Reliance on fixed income
   c)   Poor investments
<span>   d)   Cost of living
</span>
The answer is B which is Reliance on fixed income

5 0

2 years ago

Substitutes have a(n): Please choose the correct answer from the following choices, and then select the submit answer button. in

hjlf

Answer: positive cross elasticity of demand.

Explanation: In simple words, cross elasticity refers to the degree of change in the demand of a good with respect to change in the price of another goods.

In case of substitute goods, one good can easily be used in the place of another good. Thus, if the price of one good increases the demand for its substitute good also increases.

Hence from the above we can conclude that substitute goods have positive cross elasticity.

3 0

2 years ago

The outstanding bonds of Winter Time Products provide a real rate of return of 3.00 percent. The current rate of inflation is 2.

Delicious77 [7]

Answer:

The nominal rate of return on these bonds is 5%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

So,

Nominal interest rate=Real rate of return+Inflation rate

Nominal interest rate=3%+2%

Nominal interest rate=5%

4 0

2 years ago

Jill buys a refrigerator and pays the company to have it delivered. While the contract covers both a good and a service, this tr

Dominik [7]

Answer:

Article 2 of the UCC(Uniform Commercial Code).

Explanation:

UCC is said to be an acronym which stands for the Uniform Commercial Code; this is seen also to govern many different forms of contract interactions. Article 2 in most cases are seen to cover common issues ranging from

i). Goods definition of i.e any tangible item that can be moved.

ii). Situations involving missing terms in a contract, such as a missing quantity, price etc.

iii) Contract modifications and lastly

iv). Exchanges of consideration for items of value.

Alot of research has shown in most cases that article 2 is a popularly cited provision in this body of statutes, since it governs contracts for the sale of goods between merchants or between a merchant and a non-merchant.

3 0

2 years ago

Hilton company reported net income of $30,000 for the year. During the year, accounts receivable increased by $7,000, accounts p

Alina [70]

Answer:

a. $25,000

Explanation:

The computation of net cash provided by operating activities is shown below:-

Particulars Amount

Net Income $30,000

Add Depreciation $5,000

Less Increase in Accounts Receivables -$7,000

Less Decrease in Accounts Payable -$3,000

Net cash Provided by Operating Activities $25,000

7 0

2 years ago