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tensa zangetsu [6.8K]
3 years ago
8

A company purchased land for $70,000 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
Business
1 answer:
xxMikexx [17]3 years ago
3 0

Answer:

UNDER THE HISTORICAL COST OF PRINCIPLE THE COST OF LAND WOULD BE $82,000

Explanation:

Historical cost principle is one of many principle that is used in the accounting , where it states that the value of the asset which will be recorded in the asset side of the balance sheet will be based on the original amount of price which was incurred to acquire the asset at the time of purchase. In this we will include the broker's commission and amount spent for demolishing old building

COST OF LAND = purchase price + broker commission + cost on demolishing

                           = $70,000 + $5000 + $7000

                           = $82,000

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Answer:

b. Used to estimate how fast prices will double using a given annual inflation rate

Explanation:

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For example if $1,000 is to be doubled in 5 years.

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2 years ago
Andrea has prepared the following list of statements about corporations. Identify each statement as true or false.
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Answer:

1. A corporation is an entity separate and distinct from its owners.  TRUE

2. As a legal entity, a corporation has most of the rights and privileges of a person.  TRUE

3. Most of the largest U.S. corporations are privately held corporations.  TRUE

4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.  TRUE

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6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.  FALSE

7. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders.   TRUE

8. The board of directors of a corporation legally owns the corporation.  FALSE

9. The chief accounting officer of a corporation is the controller.   FALSE

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Explanation:

A corporation is a business that is a separate, legal entity that is run by board of directors chosen by the shareholders. A corporation operates or exists as an entity separate and distinct from it's owner or owners. This means that as separate or legal entity, a corporation has the rights and privileges of an individual except the right to vote and be voted for.

The stakeholders or shareholders of the corporation usually select officers to serve is board of directors and every year this board of directors nominate officers for the positions of a president, secretary and treasurer to handle the running's and activities of the corporation. If the board of directors also wishes or decides they can nominate a vice president too.

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3 years ago
Mr Sinclair has diabetes and heart trouble and is generally satisfied with the care he has received under original Medicare, but
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Answer:

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2 years ago
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Answer:

a

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