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slamgirl [31]
3 years ago
6

Kieu Corporation constructs a new warehouse. It pays $100,000 for materials and $70,000 to the general contractor. Architectural

fees total $18,000. The corporation pays $13,000 in interest on its loan to finance construction. The land costs $15,000, and the real estate taxes paid on the land during construction amount to $1,000. What is Kieu's initial basis in the warehouse?
Business
1 answer:
garik1379 [7]3 years ago
8 0

Answer:

$204,000

Explanation:

Initial cost basis is the amount of cost capitalized in the purchase of an asset for tax and other purposes.It consists of purchase price , development fees , professional fees  estate taxes and others.

Please note that finance cost is not included as it is recorded as expenses over the life of the loan.

Workings

Materials - $100,000

Contractor fees - $70,000

Architectural fees - $ 18,000

Cost of land  $ 15,000

Estate taxes - $1000

Total cost =$204,000

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Answer:

I will have $183536835400 in my savings after 1515 years

Explanation:

Deposit into the savings account = 0.11×$2000020000 = $220002200

Earnings after 1515 years = 0.55×1515×$220002200 = $183316833200

Total amount in savings plan after 1515 years = $220002200 + $183316833200 = $183536835400

3 0
3 years ago
What were the main factors in both the North and South for the abandonment of Reconstruction?
OverLord2011 [107]
Social effects were bringing families back together, the Emancipation act, and churches and schools being available to former slaves. What were the main factors, in both the North and South, for the abandonment of Reconstruction?- Land, jobs, and establishing the Bureau were the main factors for both.
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2 years ago
______________ specifies sales revenues and selling distribution and marketing costs.
frez [133]
To answer the question above as the which specifies the sales revenue and selling distribution and marketing costs is letter B, Sales budget. The answer lies in the question itself. Sales revenues,distribution and the marketing cost are all related to the sales budget. Sales budget controls the expenditure or resources related to sales.
3 0
2 years ago
On September 1, 2019, Westwood Builders borrowed $200,000 from Colorado State Bank by issuing a 7-month, $200,000, 6% note. West
attashe74 [19]

Answer:

A.

Notes Payable 200,000

Interest Payable 7,000

Cash 207,000

Explanation:

The Journal entry is shown below:-

Notes payable Dr,       $200,000  

Interest payable Dr,     $7,000  

       To Cash                        $207,000  

(Being pay off the note and interest at maturity is recorded)

Therefore for recording the pay off the note and interest at maturity we simply debited the notes payable and interest payable as it decreases the liability and we credited the cash as it also decreasing the assets.

7 0
3 years ago
Assume that you are a vending machine dealer. You plan to purchase a vending machine for $200,000. One year later, you are expec
stepladder [879]

Answer:

1) 22%

2) YES as the return in the investment is 12% while the average cost of capital in this case; is of 8% hence there is a gain above the minimum accepted return.

Explanation:

-200,000 + \frac{224,000}{1+ IRR}  = 0

IRR = 12%

weighted-average cost of capital:

DEBT      80,000 x 5%   =   4,000

EQUITY 120,000 x 10% =<u> 12,000</u>

VALUE  200,000             16,000

16,000 / 200,000 = 8%

4 0
3 years ago
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