Answer:
The land should be recorded in Clairemont Repair Service’s records at $380,000
Explanation:
According to the historical cost principle, the recording of the fixed assets should be recorded at the purchase price or cost price which is to be shown in the assets side under the balance sheet.
So, according to the question, on February 28, the repair service accepted the seller's counteroffer which means that the land was purchased on February 28 for $380,0000. So, by $380,000 amount, the land would be recorded.
Other costs which are mentioned in the question is ignored.
Answer:
The correct answer is option 3. $1990
Explanation:
Let's first analyze all the information we have:
We know that the items were originally priced at $ 4,000. With each passing year they lost 11% of their value and 4 years have passed, which leads us to the conclusion that the items lost 44% of their value.
So: (4000 x 44): 100 = 1760
Items are worth $ 1,760 less than before: 4000 -1760 = 2240.
Items now cost $ 2,240. The owner had actual cash value coverage with a deductible of $ 250. That is to say, he must bear this cost, and the rest will be paid by the company. Which brings us to: 2240-250 = 1990.
That is our correct answer.
Answer:
D. $68,000
Explanation:
The total amount of bad debt expense that should be reported for the year is $68,000. This is because since the company has a debit balance of $8,000 at the beginning of the year, the uncollectible of $60,000 would be added to the debit balance hence equals $68,000 which would serve as bad debt expense.
Answer:
Absolute advantage
Explanation:
Absolute advantage is the term which described as the ability of country, company or individual to produce the greater quantity of the service or good along with the same quantity of inputs per unit of time or producing the same amount of quantity per unit of time through using the lesser quantity of inputs.
The sepcialization should not be grounded on the absolute advantage rather it is grounded on the comparative or relative advantage as being better at something than someone else.