(Economics) Under what circumstances would corn be considered a commodity?

Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,200,000. According to indepen

bezimeni [28]

Answer:

Initial valuation of the building A=$540000

Initial valuation of the building B=$300000

Initial valuation of the land=$360000

Explanation:

First,we will calculate the total fair value of all assets:

Total fair value of assets=Fair value of building A+Fair value of building B+Fair value of land

Total fair value of assets=$585,000+$325,000+$390,000

Total fair value of assets=$1,300,000

Initial valuation of the building A= $\frac{Fair\ value\ of\ building\ A}{Total\ Fair\ value} *lump-sum$

$Initial\ valuation\ of\ the\ building\ A=\frac{\$585,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ A=\$540000$

For building B:

$Initial\ valuation\ of\ the\ building\ B=\frac{\$325,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ B=\$300,000$

For Land:

$Initial\ valuation\ of\ the\ building\ land=\frac{\$390,000}{\$ 1,300,000}*\$1,200,000\\Initial\ valuation\ of\ the\ building\ land=\$360000$

Check of answer;

Sum of all initial Values= Lump-Sum

$540000+$300000+$360000=$1,200,000

$1,200,000=$1,200,000

5 0

3 years ago

Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he

White raven [17]

Answer:

Bank B is the better investment

Explanation:

Investment = P = $2,000

Number of years = n = 10

If the She invest in Bank A

r = 8.5% simple interest

Accumulated value after 10 years = A =P + (P x r x n) = $2,000 + ( $2,000 x 8.5% x 10 ) = $2,000 + $1,700 = $3,700

If the She invest in Bank B

r = 8% Compounded yearly

Accumulated value after 10 years = A = P x (1 + r )^n = $2,000 x ( 1 + 8% )^10 = $2,000 x ( 1 + 0.08 )^10 = $2,000 x ( 1.08 )^10 = $2,000 x 2.1589 = $4,317.8

= $4,318

Hence Bank B is the better investment because it make more money than in Bank A after 10 years.

4 0

3 years ago

A company has an outstanding issue of perpetual preferred stock with an annual dividend of $5 per share. If the required return

Afina-wow [57]

Answer:

$80

Explanation:

The computation of the price of preferred stock to sell is shown below:

Cost of preferred stock = Annual dividend ÷ required return on the preferred stock

= $5 ÷ 6.25%

= $80

Simply we divide the annual dividend by the required return on the preferred stock so that the correct price of preferred stock to sell can be computed

4 0

3 years ago

Alpha Company makes products A and B. Its contribution margin statement is as follows: A B Total Sales volume (units) 400 600 1,

levacccp [35]

Answer:

Product A= $30,000

Explanation:

Giving the following information:

A B Total

Direct labor $15,000 $10,000 $25,000

Fixed Costs $50,000

<u>First, we need to calculate the allocation rate:</u>

Allocation rate= total estimated costs for the period/ total amount of allocation base

Allocation rate= 50,000 / 25,000

Allocation rate= $2 per direct labor dollar

<u>Now, for product A:</u>

Product A= 2*15,000= $30,000

3 0

3 years ago

Flagstaff Company has budgeted July production of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed facto

sdas [7]

Hi Um I’m sorry for wasting your time

6 0

2 years ago

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