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creativ13 [48]
3 years ago
12

A company purchased land for $350, 000 cash. Real estate brokers commission was $25,000 and $35,000 was spent for demolishing an

old building on the land before construction of a new building could start. Under the historical cost principle the cost of land would be recorded at:__________.
a. $385,000
b. $350,000
c. $375,000
d. $410,000
Business
1 answer:
docker41 [41]3 years ago
7 0

Under the historical cost principle the cost of land would be recorded at: <u>d. $410,000 </u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Purchase cost of land = $350,000

Brokers commission = $25,000

Cost for demolishing old building = $35,000

Principle cost of land = ?

Principle cost of land= Purchase cost of land+ Brokers commission+ Cost for demolishing old building

            = $350,000+$25,000+$35,000

            = $410,000

Principle cost of land= $410,000

The correct option is <u>d.$410,000</u>.

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4 0
2 years ago
A manager needs to have summary sales information by product line available to her on a timely basis when purchasing decisions n
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Answer:

Management information

Explanation:

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3 0
3 years ago
If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest r
Stella [2.4K]

Answer:

A. buy; rise; fall

Explanation:

As for the provided information, we know,

As the supply of money exceeds the demand people will have more investing power, accordingly people will <u><em>buy</em></u> more bonds,

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and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will <em><u>fall.</u></em>

5 0
3 years ago
the tendency of naive investors to buy high (after prices have risen for several periods) and sell low (after prices have droppe
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4 0
1 year ago
Lewis Co. sold merchandise to AdCo for $43,000 and received $43,000 for that sale one month later. One week prior to receiving p
Sav [38]

Answer:

Explanation:

Revenue recognition= [Transaction price-(Payment to advertisement-fair value)

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Thus, the revenue should Lewis co. record for the merchandise sold to Adco is:

= $43,000 - ($9,000 - $5,000)

= $39,000

7 0
3 years ago
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