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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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Which of the following is true about a sole proprietorship?
Alex73 [517]
The right answer for the question that is being asked and shown above is that:  "d. A sole proprietorship has a life of its own apart from its owner." It is considered as the simplest business form where one can operate. It is not a legal entity in itself.
7 0
3 years ago
Cartier corporation currently sells its products for $50 per unit. the company's variable costs are $20 per unit. fixed expenses
charle [14.2K]
The answer is 40%, in which the following are given: the Variable expense is equal to 20 dollars per unit and Sales is equal to 50 dollars per unit. Use the formula Variable Expense Ratio = Variable Expenses / Sales to get the answer. 

Variable Expense Ratio = Variable Expenses / Sales
Variable Expense Ratio = 20 dollars per unit / 50 dollars per unit
Variable Expense Ratio = 40 %

The variable expense ratio is an expression of variable production costs of the company as a percentage of sales, calculated as variable expense divided by total sales. It compares a cost that alters with levels of production to the number of revenues generated by production.
8 0
3 years ago
Huey, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resi
icang [17]

Answer:

c. in rem jurisdiction.

Explanation:

Jurisdiction is defined as the power or authority to decide legal cases.

Jurisdiction refers to the practical authority granted to a legal body to administer justice within a defined field of responsibility.

Federal jurisdiction refers to the legal scope of the government's powers in the U.S.A.

In rem jurisdiction refers to the power a court that it may exercise over property against a person over whom the court does not have in personam jurisdiction.

Indiana has <u>in rem jurisdiction.</u>

7 0
2 years ago
Which is not a key component of the General Agreement on Tariffs and Trade (GATT)?
AlekseyPX

Answer:

the answer is C

Explanation:

5 0
3 years ago
Read 2 more answers
Explain the kind of economic goods that are hot dogs and hot dog buns are with respect to each other, and then explain what is l
NNADVOKAT [17]

Answer:

Compliments

The demand for hot dogs would increase

Explanation:

Compliment goods are goods that are demanded together. Hot dog and hot dog bins are consumed together so they are demanded together. If the demand for hot dog increases, the demand for hot dog buns also increases.

If the price of hot dog buns falls, the demand for hot dog increases.

I hope my answer helps you

6 0
3 years ago
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