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liubo4ka [24]
3 years ago
15

On March 1, 2022, Cullumber Company acquired real estate, on which it planned to construct a small office building, by paying $8

6,000 in cash. An old warehouse on the property was demolished at a cost of $9,700; the salvaged materials were sold for $4,400. Additional expenditures before construction began included $1,500 attorney's fee for work concerning the land purchase, $8,400 real estate broker's fee, $10,700 architect's fee, and $17,900 to put in driveways and a parking lot.
Determine the amount to be reported as the cost of the land Cost of land.
Business
1 answer:
11111nata11111 [884]3 years ago
6 0

Answer:

$101,200

Explanation:

the cost of land = purchase price of the land + razing expenses - sales of salvaged materials + attorney's fees + broker's fees = $86,000 + $9,700 - $4,400 + $1,500 + $8,400 = $101,200

The cost of the driveways and parking lot are recorded separately (as land improvements), not under cost of land because they can be depreciated.

Architect's fees are generally included in the construction costs of the building, not in the land cost. The architect's fees are covered before the construction starts because you need the blueprints in order to start the construction.

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When higher prices result in a lower quantity demanded, economists call this relationship: a. the law of quantity. b. the demand
Zanzabum

Answer:

d. the law of demand

Explanation:

One of the foundations of current economy,  the inversely proportional relationship between prices and quantity demanded, that is, the higher the price the lower the demand, is known by economists as the law of demand.

This law is a key factor in the determination of prices of goods and services that we see each day and reflects the decrease in the marginal utility of each extra unit with an increase in price.

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3 years ago
Anna began with a balance of $86.54 in her checking account this month. she deposited $275.88 and wrote checks for $123.70, $66.
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your answer is $198.78 dollars

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3 years ago
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Which of the following factors, by itself, requires a corporation to comply with the reporting requirements of the Securities Ex
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Answer:

d.Shares listed on a national securities exchange.

Explanation:

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3 years ago
During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year
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Answer:

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Explanation:

First, we need to determine the supplies expense for the period. The supplies expense can be calculated by deducting the year end supplies balance from the supplies account balance.

The supplies expense = 2600 - 975 = $1625

The adjusting entry that will be made at the end of the period is,

Supplies Expense 1625 Dr

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<em>e. concept testing.</em>

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