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butalik [34]
3 years ago
15

Crane Company purchased land as a factory site for $1300000. Crane paid $110000 to tear down two buildings on the land. Salvage

was sold for $8000. Legal fees of $5000 were paid for title investigation and making the purchase. Architect's fees were $46000. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15000. The contractor was paid $4200000. An assessment made by the city for pavement was $9500. Interest costs during construction were $250000.
Required:
a. The cost of the land that should be recorded by Wilson Co. is:________
b. The cost of the building should be recorded by Wilson Co. is:_________
Business
1 answer:
Marizza181 [45]3 years ago
4 0

Answer:

a. $‭1,420,000‬

b.  $‭4,514,800‬

Explanation:

When it comes to fixed assets, all costs that directly helped make the asset available for use are to be capitalized.

Cost of Land

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

= 1,300,000 + 110,000 + 5,000 + 3,500 + 9,500 - 8,000

= $‭1,420,000‬

Cost of Building

= Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost

= 46,000 + 3,800 + 15,000 + 4,200,000 + 250,000

= $‭4,514,800‬

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Answer:

Since the actual performance of the separate account is actually higher than the assumed interest by 1 %, this means that K will be paid 1% more on the value of his/her annuity account.

Explanation:

An annuity account is a policy holder's investment account where the insurance company invests on behalf of the annuitant. The insurance company determine an assumed interest rate that will cover for the insurance company costs and the profit margin that will be paid to the annuitant periodically.

Annuity interest help investors plan for retirement income since the annuitant knows how much they expect to receive upon maturity of the policy. Knowing how to calculate the value of an annuity can also help investors to consider other investment options.

An assumed interest rate that is determined by the insurance company. This is the value of the annuity account and the annuitant should not be paid below the value of this rate. The actual interest rate is the actual performance of the investment in the market. If this rate increases, then the value of payment to be made to the annuitant also increases.

In our case, the actual performance of the separate account is actually higher than the assumed interest by 1 % this means that K will be paid 1% more on the value of his/her annuity account.

4 0
3 years ago
Which type of cover letter would the above excerpt come from? a. Prospecting cover letter b. Networking cover letter c. Applicat
Sergeu [11.5K]

I believe the answer is:  B. Networking cover letter

Networking cover letter is sent in order to obtain help from other people in similar industry as you to introduce you to potential employers. Such letters tend to massively increase the likelihood of you obtaining the job since in the employer's perspective, you are a person that his/her friends had trusted and vouch for.

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3 years ago
One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today,
gizmo_the_mogwai [7]

Answer:

Capital gain = $2.16

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.  

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

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Therefore, capital gain  as follows:  

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3 years ago
Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $300,000 for a s
My name is Ann [436]

Answer:

Jan's Bakery and Tina Cookies

Total Average Cost for the merged firm

= ($300,000 + $75,000)/2

= $187,500

Explanation:

The total average cost for Jan's Bakery and Tina's Cookies is the average of their total operating costs.  This is obtained by adding $300,000 to $75,000 and then dividing by 2.

Though, in practical terms, the presence of some synergies will cut some of the operating costs off, especially such costs as rent, advertising, and some other administrative costs.  Some selling costs will also be eliminated when the merger goes through.

8 0
3 years ago
What is total amount spent on wages and salary before any tax is being taken? [those ernings above £40000 are paying 40% income
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Answer: hello your question is open ended hence I will give you a more general answer

answer : $12,000 * number of workers  or $24,000 * number of workers

Explanation:

Income taxes are taxes been levied directly on the  income earned by the tax payer.

According to Tax rules there is a certain amount of income an individual would have to earned before any tax will be taken, incomes below $12,000  are tax free ( for singles ) and $24,000 for married individuals ; Hence the Total amount spent on wages and salary before tax is being taken = $12,000 * number of workers or $24,000 * number of workers . ( unless otherwise stated )

3 0
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