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Arisa [49]
3 years ago
9

If a company is considering the purchase of a parcel of land that was acquired by the seller for $87,000 is offered for sale at

$154,000, is assessed for tax purposes at $97,000, is considered by the purchaser as easily being worth $144,000, and is purchased for $141,000, the land should be recorded in the purchaser's books at:
Business
1 answer:
Vinvika [58]3 years ago
5 0

Answer:

$141,000

Explanation:

The company must record the land at the price at which it purchases it. In this case, the company purchased the land at $141,000, so following the historical cost principle (accounting principle), that is the value.

The historical cost principal (under US GAAP) states that any asset must be recorded at the price at which is was acquired even if their market value might be different.

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Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent. What is the c
Ratling [72]

An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.

Capital Intensity Ratio = Total Assets/Total Revenue

Return on assets = Net income/Total Assets

Total Assets = Net income/Return on Assets= $389,100/0.086

Total Revenue = Net income/Net Profit Margin = $389,100/0.028

Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33

This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.

Learn more about Capital Intensity Ratio here

brainly.com/question/14594640

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5 0
2 years ago
If Malaysian companies are highly efficient in the production of textiles and U.S. companies are highly efficient in the product
rosijanka [135]

If Malaysian companies were more efficient in textile production and the U.S. was more efficient in computer software, they should sign a <u>Free trade agreement. </u>

<h3>What would a free trade agreement do?</h3>

A free trade agreement allows for countries to be able to trade without any restrictions.

Implementing a free trade agreement here would allow funds to freely move to Malaysia for textile production, and to the U.S. for software companies.

In conclusion, this is a free trade agreement.

Find out more on free trade agreements at brainly.com/question/2201430.

3 0
2 years ago
Customers who owned Nintendo’s 8-bit video game console were unable to play the same games on the firm’s new 16-bit Super Ninten
Gala2k [10]

Answer:

I would choose B. But im not 100% sure.

Explanation:

5 0
3 years ago
Read 2 more answers
1. Why might a person assume that Ms. White would be doing well financially?
GuDViN [60]

Answer:

I think you’re a person assumes and Mr. White will be doing well financially is because she is that the one who is teaching people how to financially afford people are going to think she’s doing well financially

Explanation:

It’s really simple she’s doing she’s teaching everybody how to initially a food thing should be good

8 0
3 years ago
Employees have leadership prototypes, which they use to Multiple Choice decide whether a leader is effective based on their perc
VikaD [51]

Based on implicit leadership theory, Employees have leadership prototypes, which they use to "<u>decide whether a leader is effective based on their perception of how the leader should look and act."</u>

<h3>What is Leadership Prototype?</h3>

Leadership Prototype generally occurs when people evaluate or assess a leader's effectiveness.

Leadership prototypes are implicit leadership whereby individuals use the cognitive indication of an actual or abstract leader believed to possess all leaders' attributes.

Hence, in this case, it is concluded that the correct answer is to "<u>decide whether a leader is effective based on their perception of how the leader should look and act."</u>

Learn more about the Leadership prototype here: brainly.com/question/9772602

5 0
2 years ago
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