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forsale [732]
3 years ago
6

Bramble Corp. purchased land as a factory site for $1350000. Bramble paid $124000 to tear down two buildings on the land. Salvag

e was sold for $8400. Legal fees of $5220 were paid for title investigation and making the purchase. Architect's fees were $46100. Title insurance cost $3700, and liability insurance during construction cost $4000. Excavation cost $15340. The contractor was paid $4500000. An assessment made by the city for pavement was $9500. Interest costs during construction were $252000. The cost of the land that should be recorded by Wilson Co. is?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

$1,484,020

Explanation:

Cost of Land :

= Purchase Value  + Cost Incurred to Tear  Down 2 Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost

= $1,350,000 + $124,000 - $8,400 + $5,220 + $3,700 + $9,500

=  $1,484,020

Therefore, the cost of the land that should be recorded by Wilson Co. is $1,484,020.

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Incomplete question. The full question read:

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Options 2 - Expand the PFC fulfillment network. Add regional distribution centers in Nevada and New Jersey to the existing Kentucky distribution center. Modify operational processes and flows so that orders for delivery centers, stores, and individual consumers can be fulfilled.

Options 3 - Outsource fulfillment to a capable third party logistics company so that PFC can focus its efforts on quality production, accurate demand planning, and lean inventory management.

Himmer's next step is to fully evaluate the three options and choose a path forward before his upcoming meeting with Marcia Avis, the owner of PFC. Avis will ask tough questions and Himmer must be confident in his recommendations.

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Answer:

<u>Options 3 - Outsource fulfillment to a capable third party logistics company so that PFC can focus its efforts on quality production, accurate demand planning, and lean inventory management.</u>

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In terms of cost, it will be preferable if Himmer outsourced the fulfillment objectives to another company that is capable because if for example, they decide to go with:

option 1: they will need to set aside large funds investing in physical infrastructure; such as upgrading the existing PFC distribution center in Kentucky, buying warehouse automation tools, etc. Or they chose;

option 2: It also requires even more funds to be able to expand and add new regional distribution centers in Nevada and New Jersey, etc.

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Answer:

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