1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
maw [93]
3 years ago
12

Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price

included the land, a building, and factory machinery. Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased: Property Assessed Value Land $126,000 Building $456,000 Machinery $318,000 TOTAL $900,000 Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamarack company's records.
Business
1 answer:
Novay_Z [31]3 years ago
3 0

Answer:

The total purchase price of the plant allocated to the land, building, and machinery is $140,840, $509,707 and $355,453 respectively

Explanation:

The computation is shown below:

For land

= Total purchase price × appraisal value of land ÷ total appraisal value

= $1,006,000 × $126,000 ÷ $900,000

= $140,840

For building

= Total purchase price × appraisal value of building ÷ total appraisal value

= $1,006,000 × $456,000 ÷ $900,000

= $509,707

For machinery

= Total purchase price × appraisal value of land ÷ total appraisal value

= $1,006,000 × $318,000 ÷ $900,000

= $355,453

where, the total purchase price is

= $1,000,000 + $6,000

= $1,006,000

You might be interested in
If total liabilities decreased by $27,275 during a period of time and stockholders' equity increased by $34,366 during the same
Lilit [14]

Answer:

d.$7,091 increase

Explanation:

From the accounting equation, assets = liabilities + equity.  If the total liabilities decrease by $27,275, the assets will also decrease by $27,275.  Similarly, when stockholders' equity increased by $34,366, the amount of assets will increase by the same amount.  The net increase in assets will be $7,091, which is the difference between the increase in stockholders' equity and the decrease in liabilities ($34,366 - $27,275).

5 0
3 years ago
You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard devi
Drupady [299]

Answer:

23.56

Explanation:

Standard deviation of  the first stock (σ1) = 20%

Standard deviation of  the second stock (σ2) = 37%

The correlation coefficient between the returns (ρ) = 0.1.

Proportion invested in the first stock (W1) = 43%

Proportion invested in the second stock (W2) = 57%

The standard deviation of a two-stock portfolio's returns is given by

\sigma_{portfolio} = \sqrt{w_1^2\sigma_1^2+w_2^2\sigma_2^2+2w_1w_2\rho\sigma_1\sigma_2} \\\sigma_{portfolio} = \sqrt{0.43^2*0.2^2+0.57^2*0.37^2+2*0.43*0.57*0.1*0.2*0.37}\\\sigma_{portfolio} =0.2356=23.56\%

The standard deviation of this portfolio's returns IS 23.56%

8 0
3 years ago
When an administrative assistant reorders office supplies for a business, placing the same order as last month without checking
belka [17]

Answer:

The correct answer is straight rebuy.

Explanation:

The straight buyback is a routine, low participation purchase. A minimum of information is needed and consideration of alternatives is not necessary. This type of purchase is handled by the purchasing department and is usually acquired from a list of approved suppliers. Examples of straight repurchase are repeating purchases of office supplies, and small parts.

4 0
3 years ago
In preparing a budgeted balance sheet, the dollar amount of Accounts Receivable can be derived from: Multiple Choice The purchas
Fittoniya [83]

The sales budget and the schedule of cash receipts.

Option B.

<u>Explanation:</u>

Account receivable is the account which consists of the amount that is to be received by a firm for the goods and the services that have been delivered to the customers but the amount and the payment has not yet been received by the firm for the same.

The amount of money that is still to be received can be derived from the accounts having the sales that is done by the firm to the clients.

8 0
3 years ago
Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided t
allsm [11]

Answer:

Pattison Corporation

Activity Variance for "Travel expenses" for May would have been closest to:

$1,500 Favorable

Explanation:

Data and Calculations:

                           Fixed Element         Variable Element per  

                              per Month              Customer Served

Revenue                                                        $5,500

Employee salaries

 and wages            $46,300                         $1,000

Travel expenses                                             $ 500

Other expenses    $32,500

The Travel Expenses Activity Variance = Actual cost minus budgeted cost

= $8,500 - $10,000

= $1,500 Favorable

Actual travel expenses = ($500 x 17)

= $8,500

Budgeted travel expenses =  ($500 x 20)

= $10,000

Pattison Corporation's activity variance for Travel Expenses for the month of May is the difference between the actual travel expenses and the budgeted travel expenses.  The budgeted expenses are based on budgeted number of customers served in May while the actual expenses are based on actual number of customers served in May.

6 0
3 years ago
Other questions:
  • Shown below are selected data from the financial statements of the Supreme Company. (Dollar amounts are in millions, except for
    9·1 answer
  • Equilibrium is when the quantity demanded is no longer equal to the quantity supplied true or false
    9·1 answer
  • What is a federal and state fox on specific goods like gasoline tires airfare and cigarettes
    9·1 answer
  • Young Johnny inherited the only local cable TV company in town after his father passed away. The company is completely unregulat
    5·1 answer
  • Government inputs, especially the 1825 Erie Canal and subsequent projects like the Chesapeake and Ohio Canal, created an economi
    9·1 answer
  • What are the advantages and disadvantages of making small, frequent purchases from just a few suppliers?
    5·1 answer
  • Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted eac
    11·1 answer
  • Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa
    12·1 answer
  • Lump-sum taxes are rarely used in the real world because:_______________
    14·1 answer
  • Violet Sales Corp, reports the year-end information from 2020 as follows: Sales (35,000 units) $280,000 Cost of goods sold (105,
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!