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Mama L [17]
4 years ago
7

During 20X1, Sloan, Inc., began a project to construct new corporate headquarters. Sloan purchased land with an existing buildin

g for $750,000. The land was valued at $700,000 and the building at $50,000. Sloan planned to demolish the building and construct a new office building on the site. What is the appropriate accounting treatment for interest of $147,000 on construction financing incurred after completion of construction?A. Classify as land and do not depreciateB. Classify as building and depreciateC. Expense
Business
1 answer:
bulgar [2K]4 years ago
8 0

Answer:

C. Expense

Explanation:

The interest during construction can be capitalized through the bulding and depreciate along with them.

In this case the interest occurs after the completion of construction so are considered expense of the period.

It should be considered interest expense.

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Annette Anderson has a choice of receiving either $5,000 in two years or a discounted sum today. If her opportunity cost is 8% w
kolezko [41]

Answer:

the present value is $4,286.69

Explanation:

The computation of the sum received today is shown below:

As we know that

Present value = Future value ÷ (1+rate of interest)^number of years

 = $5,000 ÷ (1 + 0.08)^2

= $5,000 ÷ 1.1664

= $4,286.69

hence, the present value is $4,286.69

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

8 0
4 years ago
Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of
Rufina [12.5K]

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

7 0
3 years ago
Sam's (single taxpayer) year 2 taxable income was $175,000 with a corresponding tax liability of $30,000. For year 3, Sam expect
Dahasolnce [82]

Answer:

$33,000

To avoid penalties, if a taxpayer owes $1,000 or more in tax payments beyond withholdings, such taxpayer will need to have paid in for taxes the lesser of:  90% of the current year's tax ($50,000 x 90%) = $45,000, or  100% of the previous year's tax ($30,000 x 100%) = $30,000  

However, if the taxpayer had adjusted gross income in excess of $150,000 in the prior year, 110% of the prior year's tax liability is used to compute the safe harbor for estimated payments. (Previous year's tax $30,000 x 110% = $33,000).

Explanation:

4 0
3 years ago
Imagine that you are the head of recruiting for a major airline. You are charged with replacing several department-head position
USPshnik [31]
Recruiting from within the company would mean that the new personnel would be very familiar with the company procedures and also probably know most of the other employees in their office so it would/should be easy for them to be integrated into the company. Also, they would already know the culture of the company which means for example they would know how to approach people in the best way to get their cooperation. Their probable intimate knowledge of the history of the company would also make it easier for them to understand its present functioning. Hiring from outside the company would have the advantage of having someone with a fresh point of view and able to see the co. more objectively and therefore be able to point out things which may be detrimental to its proper functioning. On the positive side, having someone who has had say wide experience with various companies there is more likelihood of them being more innovative about new ways of doing things. This is related to the problem that at least with some big companies, they sometimes think that because they are big and relatively successful, they have nothing to learn from other companies and this is an erroneous idea which may prevent them from optimizing their production. 
5 0
3 years ago
Consider the example of a clothing manufacturer/seller who would like to differentiate its products from those of other firms. W
LekaFEV [45]

Answer:

Adding the manufacturer's logo to all items in the current season's collection

Explanation:

The reason is that creating brand recognition among the public helps in promoting the product and developing perception of good quality product. The products that are differentiated products are promoted by developing the brand name, charging high prices, etc. are the examples of adopting of differentiated strategy.

7 0
3 years ago
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