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Katyanochek1 [597]
3 years ago
10

A property has a replacement cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65

years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the building on a modified age-life basis
Business
1 answer:
DIA [1.3K]3 years ago
3 0

Answer:

$234,606

Explanation:

actual replacement cost = $350,000

effective age = 20 years

total economic life = 65 years

years left = 65 - 20 = 45 years

curable items = $45,000 ⇒ effective age 15 years

value of the property using modified age-life basis = (replacement cost - curable items) x (effective age / total economic life)

= ($350,000 - $45,000) - (15 years / 65 years) = $305,000 - 23.08% = $234,606

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8 0
3 years ago
On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a colo
Alenkasestr [34]

Answer:

1.March 1

Dr Cash 7,500

Cr Unearned Revenue 7,500

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Dr Unearned Revenue 7,500

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Explanation:

1.Preparation of journal entry for March 1 journal entry

Based on the information given we were told that the designer receives the amount of $7,500 as a check in advance from a customer which means that the journal entry will be:

Dr Cash 7,500

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2.Preparation of the July 31 journal entry.

Based on the information given we were told that the designer completed the design work for this customer which means that the journal entry will be:

July 31

Dr Unearned Revenue 7,500

C Design Services Revenue 7,500

7 0
3 years ago
How does compensation useful to the prospect
MArishka [77]

Answer:

Including incentives in the sales compensation plan makes a totally new level of worth within your organization. Sales compensation enables you to realize decided results and reassure behaviors in a way planned for an individual role in the organization.

7 0
2 years ago
What is the difference between demand deposits and near money? Thanks!
GalinKa [24]

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7 0
3 years ago
-Sally works an hourly office job from 8 a.m. until 4:30 p.m., Monday through Friday, with an hour each day for lunch. Lunch is
Jet001 [13]

Answer: False

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According to the Fair Labor Standards Act, an employee who works overtime is entitled to a payment of one and half times their hourly pay. However overtime counts as working for more than 40 hours in a week.

Because Sally has only worked for 37 and a half hours, she will not be entitled to any overtime pay.

6 0
4 years ago
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