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bogdanovich [222]
3 years ago
10

A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol

d 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. $102,000. B. $107,000. C. $90,000. D. $70,000.
Business
1 answer:
morpeh [17]3 years ago
5 0

Answer:

The answer is A. $102.000

Explanation:

When property, plant, and equipment is bought the historical cost must include not only the price of purchase but all the necessary expenses (commission, warranties, installation among others) to prepare the asset and leave it in place and ready to be used.

This is why is this example we need to add the commission and the expenditures of demolishing to the price of purchasing

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The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co
Sloan [31]

Answer:

See below

Explanation:

Given the above information, we can compute variable manufacturing overhead efficiency variance to be;

= (SA - AQ) × SR

Where

Standard quantity = SQ = 19,000

Actual Quantity = AQ = 7,600

Standard Rate = SR = $1.9

Variable manufacturing overhead efficiency variance

= [(19,000 × 0.3) - 7,600] × $1.9

= (5,700 - 7,600) × $1.9

= $3,610 U

3 0
2 years ago
The ___ act requires companies to produce both an internal control report and an external audit.
Rufina [12.5K]

Answer:

b :)

Explanation:

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6 0
3 years ago
Read 2 more answers
Don and maria jefferies take $500 a month from savings. don and maria also receive social security, but maria receives 120 perce
bazaltina [42]

Don's monthly social security benefit is $772.73.

Let Don's monthly social security benefit be 'x'.

Don and Maria's monthly drawing from Savings =$500.

Maria's social security = 120% of Don's social security.

Total income = $2200.

So,

500+x+\frac{120}{100}x = 2200

500+x+1.2x = 2200

2.2x = 1700

x =  $772.73

6 0
3 years ago
Read 2 more answers
The Balance sheet of Mister Ribs Restaurant reports current assets of $30,000 and current liabilities of $15,000.a. Calculate th
Pani-rosa [81]

Answer:

<u>Current Ratio = 2; Yes</u>

Explanation:

First, to solve for current ratio, simply divide the current assets by the current liabilities.

So the current ratio would be $30,000 / $15,000 resulting to <em><u>2</u></em>

Now, a current ratio greater than one means that <u>Mister Ribs will be able to pay its current liabilities as they come due in the next year.</u>

However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s liquidity or solvency.

4 0
3 years ago
Attina always spends 20 % of her income on snarfblatts. Assume that her income increases by some percentage while the price of s
cestrela7 [59]

Answer:

Income elasticity of demand for snarfblatts is 1.

Explanation:

the consumer spends 20% of the income on snarfblatts, thus the percentage change in consumption of the snaerblatts is equal to the percentage in income, that is:

Elasticity = % change in demand of snarfblatts/% change in income

               = 1

Therefore, Income elasticity of demand for snarfblatts is 1.

6 0
3 years ago
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