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Aleks [24]
3 years ago
9

On December 1, Miser Corporation exchanged 6,000 shares of its $25 par value common stock held in treasury for a parcel of land

to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common share of Miser had a fair value of $50 per share. Miser received $18,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at what amount?
Business
1 answer:
Bond [772]3 years ago
4 0

Answer:

Capitalized value $582.000.

Explanation:

Step 1. Given information.

  • The common share of Miser had a fair value of $50 per share.

Step 2. Formulas needed to solve the exercise.

  • Fair value of shares = Price per share * (Amount by selling scrap -        exchanged shares)
  • Capitalized value = fair value of shares - value of scrap.

Step 3. Calculation.

Fair value of shares = $50 * (18.000 - 6.000) = $600.000

<em />

<em>Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant.  </em>

Step 4. Solution.

<em />

Fair value of shares = $50*12.000 = $600.000  

Less: value of scrap = $18.000  .

Capitalized value = $600.000   - $18.000 = $582.000.

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Answer:

D) 4 billion British pounds

Explanation:

Trade balance or balance of trade can be defined as the difference between a country's export and import at a particular period of time.

It could be a deficit or surplus.

Deficit trade balance refers to when the export of a country is less than it's import. This means more products are imported that exported.

Surplus trade balance refers to when export of a country is more than the import.

Import is the bringing in of goods from a foreign country. This means a particular country purchase goods from another country.

Export is the sending out of goods to a foreign country. That is the selling of goods to another country.

Trade balance= Export- Import

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3 years ago
gvWegmans Bakery produces cheese cake for sale. The bakery which operates 5 days per week and 52 weeks per year can produce cake
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Answer:

(a) the optimal production run quantity (Q) = 633

(b) the total annual inventory cost (AHC AOC)  = $ 3,162.28

(c) the optimal number of production runs per year = 7

(d) The run length (production run time) = 16 days

Explanation:

(a) the optimal production run quantity (Q).

optimal production run quantity = √(2×Annual Demand×Setup Costs) / Holding Costs

                                                      = √(2×4000×$250)/ $5

                                                      = 633

(b) the total annual inventory cost (AHC AOC).

total annual inventory cost = Setup Costs + Holding Costs

                                            = 4,000/633×$250+633/2×$5

                                            = $1,579.78+$1,582.50

                                            = $ 3,162.28

(c) the optimal number of production runs per year.

number of production runs per year = Total Demand / optimal production run quantity

                                                            = 4,000/633

                                                            = 7

(d) The run length (production run time).

production run time = optimal production run quantity / produce

                                 = 633 / 40 cakes

                                 = 16 days

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