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aleksley [76]
2 years ago
13

1.6 Harper Travel Agency purchased land for $85,000 cash on December 10, 2015. At December 31, 2015, the land's value has increa

sed to $93,000. What amount should be reported for land on Harper's balance sheet at December 31, 2015?
Business
1 answer:
noname [10]2 years ago
4 0

Answer:

$85,000

Explanation:

In the balance sheet, a company records the value of assets at their historical cost. Assets are recorded in the balance sheet at the price that they were acquired.  Even if a company has strong reasons to believe that the value of an asset has increased, It cannot adjust its value in the books.

Harper will record the value of the land at $85,000.  $93,000 represents the fair value of the property. Harper cannot record the fair value in the balance sheet. The fair value is only used when disposing of the property. The only way of verifying the fair value is by selling the property.

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The material wealth of society is determined by the economy's _________, which is a function of the economy's _________. a. inve
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Answer:

The material wealth of society is determined by the economy's productive capacity, which is a function of the economy's real assets.

Explanation:

Production capacity or <em>productive capacity</em> is the maximum level of activity that can be achieved with a given productive structure. The study of capacity is essential for business management in that it allows analyzing the degree of use made of each of the resources in the organization and thus have the opportunity to improve them.

<em>Real assets</em> are physical assets that have value due to their substance and properties. Real assets include precious metals, raw materials, real estate, agricultural land, machinery and oil. They are appropriate for inclusion in more diversified portfolios due to their relatively low correlation with financial assets such as stocks and bonds.

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During the first two years, ABC drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its cus
Andrej [43]

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Explanation:

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How can creating a customer profile help entrepreneurs identify their target market
Nimfa-mama [501]

Creating a customer profile helps identify markets because the information on it is too persuade the buyer, customer or Purchaser. I'm in 6th grade don't judge x

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Carly donated inventory (ordinary income property) to a church. She purchased the inventory last month for $100,000, and on the
MissTica

Answer:

$92,00

Explanation:

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Sneed Corporation issues 12,700 shares of $49 par preferred stock for cash at $63 per share. The entry to record the transaction
hichkok12 [17]

Answer:

Dr Cash 800,100

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