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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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Conor broke his wrist while playing basketball in the backyard. He ended up in the hospital. After an X-ray, MRI, doctor visit a
Anna11 [10]

Answer:

$6,000

Explanation:

A deductible is the amount Conor has to pay before his medical bills and prescriptions start getting coverage from his insurance.

Step 1: 10,000 - 2,000 = 8,000

A co-pay is a fixed amount the insured has to pay for certain medical services.

Step 2: 20% of 8,000 or 0.20 times 8,000 = 1,600

Step 3: add $2,000 (the deductible you have to pay) and $1,600 (the co-pay)

Total amount that Conor will have to pay for the hospital: $3,600

3 0
3 years ago
When must you inspect your tools and extension cords?
Iteru [2.4K]

Answer:

Testing should be conducted on each piece of equipment every three months, as well as before first use or return to service after repair. In order to ensure a grounding wire is electrically continuous throughout the extension cord or power tool, a continuity test must be conducted.

Explanation:

3 0
3 years ago
The stock price of Baskett Co. is $53.40. Investors require a return of 12 percent on similar stocks. If the company plans to pa
Gemiola [76]

Answer:

Growth Rate = 5.73%

Explanation:

The present value of stock formula can be used here to solve this problem.

The formula is:

P_0=\frac{Div_1}{r-g}

Where

P_0  is the current stock price

Div_1  is the dividend to be paid next year

r is the rate of return required

g is the growth rate expected

Now, the first 3 variables are given, we need to find g. Substituting, we find our answer:

P_0=\frac{Div_1}{r-g}\\53.40=\frac{3.35}{0.12-g}\\53.40(0.12-g)=3.35\\6.408-53.40g=3.35\\53.40g=3.058\\g=0.0573\\

In percentage, it is

<u>Growth Rate = 5.73%</u>

7 0
3 years ago
Which of the following statements about internal models is FALSE?
Vesnalui [34]

Answer:

C. Internal Models use sensory information for motor control but do not to consider physiological or biomechanical features of the body.

4 0
3 years ago
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 40 persons working an average
nignag [31]

Answer:

1a. Predetermined Overhead Rate= 60%

Explanation:

Predetermined Overhead Rate=

Estinated overhead cost/Direct labor cost= $1,440,000/(40*$20*3000)

=60%

1b. Total Overhead Cost applied to each job

Job No Direct Labor Applied FOH60%

201 606,000 363,600

202 565,000 339,000

203 300,000 180,000

204 718,000 430,800

205 316,000 189,600

206 19,000 11,400

Total $2,524,000 $1,513,600

Overhead cost applied=

Direct Labor (1.b) * Predetermine overhead rate (1.a)

example:

(Job No. 201) 606,000 * 0.6 = 363,600

1c. Over applied or under applied at year end 2017

Actual Over head cost $1,542,000

Less:Overhead Appied - $1,513,600

Under applied over head $28,400

2. Adjusting Entry

Date Account Title Debit Credit

Dec Cost of goods $28,400 -

-31 sold

Factory - $28,400

Overhead

5 0
3 years ago
Read 2 more answers
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