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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:

D) a rise in price

Explanation:

At the equilibrium point, the quantity demanded and the quantity supplied are the same. There is no excess shortage or supply in both demand and supply.

A shortage occurs when suppliers are not able to meet the market demand. Here, demand is the quantity that buyers are willing to buys at a specific price over time.  As per the law of demand, high product price causes demand to decrease while low price results in increased demand.

A shortage of a product means its demand is high. Many buyers are willing to buy the commodity at the current price.  As per the law of demand, a price increase will result in reduced demand and achieve equilibrium.

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3 years ago
Before year-end adjusting entries, Dunn Company's account balances at December 31, 2020, for accounts receivable and the related
navik [9.2K]

Answer:

Option (B) is correct.

Explanation:

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7 0
3 years ago
If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the ma
aniked [119]

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small; standardized; little or no

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A perfect competition is when there are many firms in an industry selling standardised or identical goods and services. It is characterised by many buyers and sellers . Sellers have small market share because of the large number of sellers in the market. Prices are usually set by market forces. Sellers cannot influence the price their products sell for , therefore, they are price takers.

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I hope my answer helps you.

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