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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

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the trasportation costs involved in getting a product to a cosumer after the product has been made are 1. transaction costs 2.co
Elena-2011 [213]
The right answer for the question that is being asked and shown above is that: "<span> 4.independent costs." </span>The trasportation costs involved in getting a product to a cosumer after the product has been made are <span> 4.independent costs</span>
3 0
3 years ago
Crane Company provided the following information on selected transactions during 2021: Purchase of land by issuing bonds $950000
Alenkasestr [34]

Answer:

$296,000

Explanation:

Consider cash movement in purchase and sale of capital assets only.

<u>Cash flow from investing activities :</u>

Proceeds from sale of equipment                 $296000

Net Cash Provided by investing activities    $296000

therefore,

The net cash provided by investing activities during 2021 is $296000.

5 0
3 years ago
To transform resources into profits, organizations combine type types of work - operations and ___________.
Vlad [161]

Answer: Apart from the resources, there are three important factors for production, these are work (people or man hours available), investment (machinery and equipment needed) and organization (business planning).

Explanation: The first three factors were selected by the classical economy where Adam Smith and David Ricardo appeared, to these other organizational factors have been added, however their objective is the same, so that a company achieves the goals set, it has the task of combining these factors in the best way possible. Example: maximize man hours, use the best machinery, that the land or resources are prepared for production.

4 0
3 years ago
A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for simil
Ann [662]

Answer:

Nonstructured pricing

Explanation:

Nonstructured pricing is also called copy cat method of pricing and involves a pricing that is based on prices charged by similar businesses for a product or service. The business copy cats the prices of competitors. On the other hand structured pricing is done based on the firm's internal determination of the value of a product.

A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for similar dishes at the other restaurants. He is using no structured pricing.

8 0
3 years ago
Read 2 more answers
If the net present value of the payments at the time of the leases was 88% of the actual market price and the useful life of the
Aliun [14]

Answer:

A. True

Explanation:

Examples of situations that individually or in combination would normally lead to a lease being  classified as a finance lease are:

(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease  term;

(b) the lessee has the option to purchase the underlying asset at a price that is expected to be  sufficiently lower than the fair value at the date the option becomes exercisable for it to be  reasonably certain, at the inception date, that the option will be exercised;

(c) the lease term is for the major part of the economic life of the underlying asset even if title is  not transferred;

(d) at the inception date, the present value of the lease payments amounts to at least substantially  all of the fair value of the underlying asset; and

(e) the underlying asset is of such a specialised nature that only the lessee can use it without major  modifications.

Since at the time of lease the net present value of the payments is 88% of the actual market price and the useful life of the asset was 70% at the end of the lease term and also the title of asset shall not be transferred to lessee at the end of lease term, therefore the lease shall not be classify as finance lease and it shall be classified as operating lease so the answer is A. True

4 0
3 years ago
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