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viktelen [127]
3 years ago
8

While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec

ided not to go forward with the project, so the building is available for sale or for a new product. Cook owns the building free and clear⎯there is no mortgage on it. Which of the following statements is CORRECT?(A) Since the building has been paid for, it can be used by another project with no additional cost. Therefore, it should not be reflected in the cash flows for any new project.(B) If the building could be sold, then the before-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.(C) This is an example of an externality, because the very existence of the building affects the cash flows for any new project that Rowell might consider.(D) If there is a mortgage loan on the building, then the interest on that loan would have to be charged to any new project that used the building.None of the above.
Business
1 answer:
Mariulka [41]3 years ago
3 0

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

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When stock traded on an active exchange is issued for a machine:
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Answer: B. An asset is recorded for appraised value of the stock

Explanation: The stock traded on an active exchange is issued for a machine, an asset is recorded for the appraised value .

Stock traded can be issued in exchange for money, property, or services provided to a corporation. Example of these are;

1. an investor could give a utility vehicle in exchange for a company’s stock.

2. an investor could provide legal fees in exchange for stock.

The underlining rule here is to recognize the assets received in exchange for stock at the asset’s fair market value.

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4 years ago
In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual in
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Explanation:

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4 years ago
If the bath was set to 80 °c, what do you think would happen to the rate of photosynthesis
Dmitry_Shevchenko [17]

The rate of photosynthesis would be slowed down, the rapid heat increase would put the plant into a sort of shock, slowing down the cells activities and then the plant would eventually die

8 0
4 years ago
Professional social media sites can also help employers find you. When you create an account, you describe your work history in
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3 years ago
Read 2 more answers
Which of the following will be considered a final good in the calculation of U.S.​ GDP? ​(Check all that apply​.) A. Transmissio
timama [110]

Answer:

A. Transmissions manufactured in Alabama for Ford's range of Upper F minus series pickup trucks. B. School supplies purchased by a local school board.

Explanation:

The remaining two options are not considered in the calculation because GDP concerns the consumption of final goods by the public. C. Canned foods purchased by a grocery store. Here a store is the buyer, not a public consumption. D. Foot massages at spas in California. Here massages are not classified as a product.

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