1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rjkz [21]
3 years ago
15

Ratliff Development Corporation purchases a tract of land in 2018 at a cost of $120,000 and subdivides the land into 30 building

lots. The cost of subdividing is $6,000. In 2018, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2018 and 2019. Interest paid on the loan used to purchase the land is $10,000 in 2018 and $6,000 in 2019. In 2019, Ratliff sells 10 lots for a total of $350,000. What is the corporation’s gain or loss on the sale of the lots?
Business
1 answer:
puteri [66]3 years ago
5 0

Answer:

$ 290,000

Explanation:

$ 120,000 Land cost

<u>Expenses</u>  

$   6,000 Subdividing

$ 36,000 Roads and Utilities

$ <u>  2,000</u> Taxes

$ 44,000 Total

<u>Interest</u>  

$ 10,000 2018

$ <u>6,000</u> 2019

$ 16.000 Total

<u>Cost of Each Lot</u>  

$ 120,000 Land cost

$  44,000 Total Expenses

$  <u> 16,000</u> Interest  *

$ 180,000 Total Cost

$     6,000      Each   ( $ 180,000 / 30 units ) *

<u>Quantity  sold:  30 </u>

$ 6,000 Cost per unit

<u>Sales</u>  

10 x $ 35,000    =   $ 350,000  

 

<u>Income Statement</u>  

Sales $ 350,000

Cost $<u>   (60,000) </u>  ( = $ 6,000 x 10 units ) *

Gain $ 290,000     *

<em>* Includes financing costs</em>

You might be interested in
There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate
atroni [7]

Answer:

a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.

b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile

c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.

Explanation:

8 0
3 years ago
If disposable personal income​ (dpi) =​ $800 and personal income taxes​ = $100, then what is personal income​ (pi)?
Ymorist [56]
The personal income is $700. 
GIven: 
Disposal personal income (dpi) = $800
Personal income taxes = $100

Solution:
Disposal personal income minus personal income taxes.
$800 - $100 = $700

So, the personal income or pi is equal to $700.
4 0
2 years ago
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
Joshua, a manager, instructed his subordinate, Leona, to mobilize their team and prepare a report on how the office could be mad
Karolina [17]

Answer:

The email message can be read again for further reference by Leona.

Explanation:

The oral communication tends to he an effective way to give a message, however sometimes it can present difficulties. The oral communication can be misunderstood when there are phonetic expressions or physical expressions that might confuse to the person who receives the message.

The email or written communication is a more formal way to give a message, the person who receives the message can read it multiple times avoiding mistakes, furthermore, when there is a written message the person who wrote it selected the word and refine the information making it clear and easy to read.

3 0
3 years ago
Ratios that measure the income or operating success of a company for a given period of time are.
RideAnS [48]
A solvency ratio. It measures the income or operates success of an enterprise for a given period of time.
8 0
2 years ago
Other questions:
  • What is a potential negative effect of an expansionary policy?
    5·2 answers
  • Unsystematic Risk:a. can be effectively eliminated by portfolio diversificationb. is compensated for the risk premiumc. is measu
    13·1 answer
  • Sixth fourth bank has an issue of preferred stock with a $6.10 stated dividend that just sold for $123 per share. what is the ba
    12·1 answer
  • The kinked-demand curve of an oligopolist is based on the assumption that
    7·1 answer
  • Skipping a credit card payment once or twice a year will not hurt my credit
    15·1 answer
  • 1. The field of management science a. concentrates on the use of quantitative methods to assist in decision making. b. approache
    13·1 answer
  • Which account is an example of a contra-expense account?
    9·2 answers
  • A public relations specialist earns $41,500 salary each year. He/she wants to spend no more than three times his/her salary on a
    12·1 answer
  • How can communication help to make a business or a company thrive?​
    7·1 answer
  • _______________________ involves converting a data field from one format to another with the goal of harmonizing it.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!