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Mama L [17]
3 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]3 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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The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d
Snowcat [4.5K]

Answer:

18.80%

Explanation:

Data given

Risk free rate = 4%

Beta = 1.85

Market return = 12%

The computation of rate of return is shown below:-

Using CAPM

Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)

= 4% + 1.85 × (12% - 4%)

= 4% + 1.85 × 8%

= 4% + 14.8%

= 18.80%

Therefore for computing the rate of return we simply applied the above formula.

6 0
3 years ago
True or false. An income statement provides investors with a report of a firm’s profitability over a specific period of time.
Tpy6a [65]

false is the answer.

6 0
3 years ago
concepts like value and relationship marketing are important in designing an organization's marketing program because such a pro
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Concepts like value and relationship marketing are important in designing an organization's marketing program because such a program is what connects the organization to its customers.

 Below you can read further to understand more on customer relationship Management.

<h3>What is Customer Relationship Management?</h3>

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This also involves the process of nurturing positive relationships with your customers.

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4 0
1 year ago
If your paycheck was $800 each week, then the nominal value would be less than $800 as we adjust it for inflation. be more than
tia_tia [17]

The answer is : the nominal value would be equal to the $800 face value of the paycheck. The nominal value is the book, par or face value, which in the case of the paycheck is $800.00

4 0
4 years ago
Read 2 more answers
The opportunity cost of producing a bicycle refers to Group of answer choices the marginal cost of the last bicycle produced. th
Sever21 [200]

Answer:

the value of the goods that were given up to produce the bicycle.

Explanation:

Opportunity cost is the cost of the next best option forgone when one option is chosen over other alternatives.

the opportunity cost of purchasing the bicycle is the value of  other things that could have been bought instead of the bicycle

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3 years ago
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