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Kamila [148]
3 years ago
5

On January 1, 2021, Laramie Inc. acquired land for $9.6 million. Laramie paid $2.9 in cash and signed a 6% note requiring the co

mpany to pay the remaining $6.7 million plus interest on December 31, 2022. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Laramie record the purchase of land?
Business
1 answer:
Alexxandr [17]3 years ago
6 0

Answer:

$9.6 million

Explanation:

The amount Laramie would record in its books of account in respect of the land acquisition cost is the sum of the cash paid now and the notes payable .

That effectively gives acquisition cost of $9.6 million ($2.9 million+$6.7 million).

The interest payable on the notes payable of $6.7 million would be treated as expense in the income statement of years 2021 and 2022 respectively without being added to the acquisition cost since it is a revenue expense and should not be capitalized.

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occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in o
Vera_Pavlovna [14]

Answer:

The answer would be PRICE SIGNALING

Explanation:

Price signaling may occur when consumers have  imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as  the product’s price. We examine the scenario whereby the firm can endogenously change  consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes  the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect  is pronounced in the downward direction, meaning that price signaling  causes prices to  respond less to cost decreases than cost increases.

8 0
3 years ago
Nadine is retiring today and has $96,000 in her retirement savings. She expects to earn 5.5 percent, compounded monthly. How muc
Ann [662]

Answer:

The monthly withdrawal is $701.10  

Explanation:

The monthly withdrawal can be computed with PMT formula using excel spreadsheet.

The formula is PMT(rate,nper,-pv)

The fv and type are both taken as zero.

However, the rate of 5.5 % given in the question is a yearly rate,but the requirement of the question is monthly withdrawal, hence the rate is divided by 12 months to reflect a monthly rate i.e 5.5%/12

Besides, the nper should  also to be adapted to show that the withdrawal is to be made every month for 18 years, hence nper is 12*18

The computation of the pmt based on the above highlighted points is found in the attached.

Download xlsx
6 0
3 years ago
Purely competitive industry X has constant costs and its product is an inferior good. The industry is currently in long-run equi
jasenka [17]

Answer:

increase in output, but not in the equilibrium price of the product. 

Explanation:

The options weren't provided. The full question can be found here - https://www.chegg.com/homework-help/questions-and-answers/perfectly-competitive-industry-x-constant-costs-product-inferior-good-industry-currently-l-q39354625

An inferior good is a good whose demand increases when income falls and whose demand falls when income rises.

When average income falls, the demand for good X rises. The level of output increases as a result of the rise in demand but price doesn't change.

I hope my answer helps you.

5 0
3 years ago
_____ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to en
Reil [10]

Answer: Domestication.

Explanation:

Domestication is a method of contoling foreign investment in a country by setting limits to what a foreigner can own in a country. Domestication ensures that the owners of major investments in a country are majorly citizens of that country.

7 0
3 years ago
All of the following are deductible as medical expenses except:
MAVERICK [17]

Answer:

The correct answer is letter "D": vitamins and health foods that improve a taxpayer's general health.

Explanation:

The Internal Revenue Service (IRS) set deductions of medical expenses that exceed 10% of taxpayers' Adjusted Gross Income (AGI) for 2020. <em>Preventive care, surgeries, dental and vision assistance, psychologists and psychiatrists visits </em>are considered for deductions.  

<em>Prescription medications, glasses, false teeth, </em>and <em>hearing aids </em>are also included but non-prescription drugs -<em>but insulin</em>- are not deductible. Thus, vitamins and healthy food prescriptions are not deductible.

5 0
3 years ago
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