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Flura [38]
3 years ago
8

Vijay Inc. purchased a three-acre tract of land for a building site for $250,000. On the land was a building with an appraised v

alue of $122,000. The company demolished the old building at a cost of $12,600, but was able to sell scrap from the building for $1,690. The cost of title insurance was $960 and attorney fees for reviewing the contract were $540. Property taxes paid were $3,800, of which $320 covered the period subsequent to the purchase date.
The capitalized cost of the land is:
Business
1 answer:
mart [117]3 years ago
3 0

Answer:

$264,930

Explanation:

Land is an asset, an item of property plant and equipment (fixed asset). As such it is recorded at historical cost which includes the cost of the land as well as other cost incurred in making the land available for use net of the income generated in the process of making the asset available for use. Other cost may have been incurred in the process of purchasing the land but only the cost necessary to make the land available for use are capitalized.

Hence, the capitalized cost of the land is:

= $250,000 + $12,600 - $1,690 + $540 + $3,800 - $320

= $264,930

The cost of insurance will be expensed.

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Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are nec
Kipish [7]

Answer:

The correect answer is b. mitigate her damages.

Explanation:

The duty to mitigate damages, also called the duty of cooperation or obligation for itself, constitutes a limit  to the protection of the right of the affected party with the breach in regard to the amount of compensation, which arises after the cause of the damage.

This legal figure imposes on the creditor the duty to take reasonable measures at its disposal to reduce the damage arising from the  breach of contract and, correspondingly, abstain  of those unreasonable that can increase it. This means that the mitigation duty operates as a disincentive mechanism to  the passive or negligent attitudes of the creditor in the face of default, and prompts him to prevent the aggravation of the damage.

6 0
3 years ago
Dividends cause a(n) __________ in equity and are recorded directly in the _______ account.
earnstyle [38]

Answer:

Dividends cause a decrease in the equity account and are recorded directly in the dividend account.

Explanation:

When dividends are paid out, owners equity decreases as dividends are paid out of retained earnings and after the dividends have been paid the share holders are left with less equity. Also they are directly recorded in the dividend account.

3 0
3 years ago
How will you measure the results of your launch: a) Executive Summary b)SWOT Analysis c) Product or Service Definition d) Compet
kondaur [170]

Answer: g.Measurement and Analytics

Explanation:

Measure and Analytic plan

The results of the launch must be measured and analysed to determine whether a launch was a success or not. We measure and analyse results against predetermines objectives, outcomes of the launch. analysing results will show us if predetermined objectives or outcomes were met, which will be an indication that launch was a success. if objective or outcomes were not met then the launch was not a success we need to analyse result more to check where we went wrong and come up with new ideas

7 0
3 years ago
An opera house is offering three performances and has two types of consumers. The performances are "Carmen," "Madama Butterfly,"
Likurg_2 [28]

Answer: Bundle all the three operas together

Explanation:

Customers purchase a good only if its price is less than the customer’s reservation price.

Total WTP of consumer 1 = 100 + 200 + 70 = 370

Total WTP of consumer 2 = 120 + 100 + 150 = 370

Hence, all the three operas should be bundled together.

4 0
3 years ago
Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 12 percent a
aalyn [17]

Answer:

Idol Staff, Rail Haul, Poker-R-Us

Explanation:

The standard deviation of a stock is a measure of the volatility of the stock or simply put, a measure of risk of the stock.

The idea of using standard deviation as a measure of stock risk is in the relation of the stock to its returns.

The farther the standard deviation is from the revenue, the more risky or at risk the stock is.

From the above question, Idol staff has the highest level of risk of 20% (i.e 35-15). Next up is Rail Haul with a risk level of 13% (i.e 25-12). the stock with tthe lowest risk level is Poker-R-Us with 11% (i.e 20-9).

Cheers.

3 0
3 years ago
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