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4 years ago

Additions and improvements

Business

1 answer:

zvonat [6]4 years ago

4 0

Answer: D- increase the net book value of plant assets when incurred.

Explanation:Plant Assets like property, plant, equipment are fixed assets and are referred to the resources that have physical substance. They are used in the running of a business and are not for customers sale.

-Additions and Improvements are the costs incurred to increase a plant assets by increasing efficiency and productiveness of the asset, they increase the net book value of plant assets when they are incurred leading to more productive facilities and output

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On August 31, Planar Corp. exchanged 100,000 shares of its $40 par value common stock for all of the net assets of Sistrock Co.

vlada-n [284]

Answer:

$7,200,000

Explanation:

Calculation to determine At what amount should Planar record the acquisition of Sistrock's net assets

Using this formula

Acquisition of Sistrock's net assets =(Shares of common stock issued ×Common stock fair value per share

Let plug in the formula

Acquisition of Sistrock's net assets=100,000*$72

Acquisition of Sistrock's net assets=$7,200,000

Therefore the amount that Planar should record the acquisition of Sistrock's net assets is $7,200,000

3 0

3 years ago

What is a master budget? What are some of the underlying budgets that form the master budget? What is the budgeting process at y

Grace [21]

Master budget is an expensive strategy and some of the major elements that form the master budgets are the over head and the production the cost and the expenses . The budgeting process is master budgeting and it is always effective

Explanation:

Master budgeting is something that includes the future calculated value and the future income and the expenses of the company and the level at which the expenses are maintained are all contained in the master budget

There are two types of budgets the operational budgets and the financial budgets and the main elements of the master budgets are the overall incomes and the expenses the future investments the predicted total production of the company are all taken into account

6 0

4 years ago

On January 1, 2019, Electro Inc. issued $740,000 of 7.5%, four-year bonds that pay interest semiannually on June 30 and December

Strike441 [17]

Answer:

Cash 680,186 debit

discount on BP 59,814 debit

Bonds payable 740,000 credit

--to record issuance of the bonds--

interest expense 34009.3 debit

discount on BP 6259.3 credit

cash 27750 credit

--to record first payment of the bonds--

Explanation:

procceds 680,186

face value 740,000

discount on bonds payable 59,814

bond rate (semi-annually) 7.5% / 2 = 0.0375

market rate (semi-annually) 10% / 2 = 0.05

The first payment will be:

cash proceeds: face value x bond rate:

740,000 x 0.0375 = 27,750

interest expense: carrying value x market rate

680,186 x 0.05 = 34,009.3

amortization on discount on BP:

34,009.3 - 27,750 = 6259.3

5 0

3 years ago

Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industr

trapecia [35]

Supply price elasticity measures sellers' sensitivity to changes in price. When price changes have a large impact on supply, we say that supply is price elastic, with small price increases supply will increase considerably. We say that an offer is perfectly elastic when from a certain price level, suppliers have bid as much as possible. In the short term, however, firms bump into structural factors to deliberately increase their supply. For example, a factory has a short-run maximum production limitation. In the short term, the factory may grow its plant and buy more machines, but in the short term from one point the supply is more rigid.

There are, however, some exceptions. In the case of natural monopolies, such as water supply, the increase in price may increase supply indefinitely. This is a case where, in the short run, price elastic supply can be infinitely elastic. Thus, rising prices can increase the amount of water supplied as much as demanded by consumers. This is because the marginal cost of supplying more water is low for the firm.

Note: marginal cost is the cost of manufacturing one more unit of the product supplied. In the case of water, the marginal cost of providing 1 unit of water measurement is very low.

4 0

3 years ago

When or how does a contract become a legal document and is binding on all parties involved?

mr_godi [17]

For a contract to be legally binding and enforceable, consideration must be exchanged. A legally enforceable contract can either be written or oral. However, depending on the nature of the transaction, some contracts might need to be written down to be enforceable. Hope this helps

7 0

4 years ago