1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga_2 [115]
3 years ago
13

In January of 20X1, the Falwell Company began construction of its own manufacturing facility. During 20X1, $6,000,000 in costs w

ere incurred evenly throughout the year. Falwell took out a $2,500,000, 10% construction loan at the beginning of the year. The company had no other interest-bearing debt. What amount of interest should Falwell capitalize in 20X1?
Business
1 answer:
WITCHER [35]3 years ago
3 0

Answer:

$250,000

Explanation:

The computation of the interest capitalized is shown below:

= Amount of construction loan × given percentage

= $2,500,000 × 10%

= $250,000

We simply multiplied the construction loan amount with the given percentage so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

You might be interested in
Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
erastova [34]

Answer:

C. Ron’s basis in his stock is $27,000

Explanation:

Income recognized on services rendered $21,000

Add basis of $6,000

Ron stock basis $27,000

The property contributed by Ron is not considered insignificant compared to the value of the services he has rendered, which is why the entire contribution is counted as being for property.

Hence, the control requirement is satisfied and a valid § 351 transaction results. Ron’s stock basis is $27,000 [$6,000 (basis of cattle transferred) + $21,000 (income recognized on services rendered)]

4 0
3 years ago
48. What is the economic process or activity of producing goods and
fgiga [73]

Answer:

O C. Production

Explanation:

Production is the organized activity of combining different materials (inputs) to make consumable goods and services. It is the process of converting resources to finished products and services for sale. Production occurs to meet the demand for the goods and services in the market.

Entrepreneurship involves the generation of an idea and transforming it into a profitable business. Factors of production are the inputs necessary for making goods and services. These factors of production (inputs) are the ingredients in the production process.

7 0
3 years ago
The difference between the cost of a product or service and the selling price of that product or service is called
enot [183]

Answer:

rate

Explanation:

it's called at rate

8 0
3 years ago
Which of the following terms addresses the problem when introducing a new product line could steal sales away from an existing p
lora16 [44]

Answer:

"A"

Explanation:

Market enhancement is the process of improving the production line of an existing product in order to increase the value, efficiency and effectiveness giving the product a market leading status and an edge over the rivals and  new entrants.

It involves research , review and upgrade of production system

This is used to ensure that an existing product has the features to withstand the competition that a new product might bring

7 0
3 years ago
During the first week of October, the workers at Walton's Widget Factory produced the following outputs: on Monday, 10 workers p
EleoNora [17]

Answer:

The average product of labor per day is 324

Explanation:

To find the average product of labor per day we need to know the total number of widgets produced divided by the worked days.

Average Product= total number of widgets /days

Monday, 10=250 widgets

Tuesday, 11=286 widgets

Wednesday, 13 =364 widgets

Thursday, 14 workers= 396 widgets

Friday, 12 workers=324 widgets

TOTAL WIDGETS= 250+286+364+396+324=1620

Days= 5 days

Average Product= 1620/5=324

8 0
3 years ago
Other questions:
  • Amanda wants to start a business to sell handmade jewelry. She is very competent at making the jewelry and teaching others to ma
    7·2 answers
  • When property rights are well defined and markets are: competitive market equilibrium violates the conditions for economic effic
    12·1 answer
  • Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
    7·1 answer
  • All else equal and given the current system of exchange rates, if the United States enters a period of exceptionally strong grow
    13·1 answer
  • Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the
    12·1 answer
  • Which is the most common ethical dilemma that financial planners face? A. method of meeting their clients B. method of charging
    7·1 answer
  • What is the most likely reason why the author includes realistic elements in his description of the watchdog?
    9·1 answer
  • Answer the following question as it relates to the 2013 Louisiana Residential Agreement to Buy or Sell: The purchase agreement p
    11·1 answer
  • Knowledge Check 01 Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of
    15·1 answer
  • gemma corporation sells a single product for $40 per unit. last year, the company's sales revenue was $2,950,000 and its net ope
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!