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Zigmanuir [339]
3 years ago
14

On December 1, Miser Corporation exchanged 2,000 shares of its $25 par value common stock held in treasury for a parcel of land

to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common shares of Miser had a fair market value of $50 per share. Miser received $6,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at what amount?
Business
1 answer:
Allushta [10]3 years ago
8 0

Answer:

Capitalized value = $188000

Explanation:

Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant.

Fair value of shares = $50*4000 = $200000

Less: value of scrap = $12000

Capitalized value = $188000

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Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
tresset_1 [31]

Answer:

Contribution per unit of scare resource (in hour) = $24 per hour

Explanation:

The question falls under the limiting factor analysis

<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>

Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.

Contribution per unit of scare resource is determine as follows:

Contribution per unit of scare resource for Model K-3

Contribution per unit of Model K-3 = $6

Machine time per unit =  15 minutes

<em>Contribution per unit of scare resource in minutes</em>

=Contribution per unit/Machine time per unit

= 46/15 minutes

= $0.4 per minute

Contribution per unit of scare resource (in hour)

$0.4 per minutes× 60

= $24 per hour

7 0
3 years ago
The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J
Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0
3 years ago
Harry forms the Nectarine Corporation during the 2019 tax year. To form the corporation, Harry transfers assets having a fair ma
Maksim231197 [3]

Answer:

150000

Explanation:

The question says that Harry received a fair market value = 450000 dollars

Meanwhile he transferred 650000 dollars of assets

Fair value of assets = 650000 - 200000 = 450000

Harry's adjusted basis = 350000

Therefore the share received will be:

350,000 - 200,000

= 150,000 dollars.

Harry's basis in the stock received from the corporation is $150,000.

Thank you!

5 0
3 years ago
Which of the following is true regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college c
blsea [12.9K]

Answer:

All of these options is true

Explanation:

Statement of revenue and expenses is a comprehensive report showing the amount of profit earned minus the amount of operating expenses.

It provides information regarding the organization's operation as well as the revenue generated.

Revenue earned is collated as receipts and included in the statement of revenue and expenses.

Regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college choosing to report as a special-purpose entity engaged in business-type activities, the following apply:

  • State appropriations should be reported as non-operating income
  • Both contributions for plant and for endowment purposes must be reported separately after both operating and non-operating revenues and expenses
  • An operating income figure must be displayed
4 0
3 years ago
You need to decide whether to fight a small fire using a portable fire extinguisher.
julsineya [31]

Answer:

If you encounter a fire, a portable fire extinguisher can help protect you and possibly stop the fire in its tracks. This article covers how portable fire extinguishers work and how to use them.

Secure Your Exit

The first and most important purpose of a portable fire extinguisher is to help people escape. Portable fire extinguishers can clear fire away from your escape route or help keep an exit open for others. You should know where extinguishers are located and how to operate them. This helps ensure safe evacuations.

Fight the Fire

The second purpose of a portable fire extinguisher is to fully extinguish fires. This requires training. Portable fire extinguishers cannot extinguish large fires. Many employers do not want their employees fighting fires no matter the size. If this is the case, the extinguishers in your workplace may only be for protecting escape routes. If your employer wants you to fight small fires, they will train you.

Types of Fire Extinguishers

Fire extinguishers are rated to fight different classes of fire. Most extinguishers are rated to fight A, B and C fires, but not all. Make sure the fire extinguisher you use will work on the fire you’re facing. The wrong extinguisher could make things worse.

8 0
3 years ago
Read 2 more answers
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