Based in the historical cost principle, the total cost of
the land would be the summation of all cost, either direct or indirect.
Therefore it would be:
Cost of Land = $90,000 cash + $5,000 commission + $7,000
demolishing
Cost of Land = $102,000
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Answer:
She bought 5 pairs of socks
Explanation:
Price of one pair = $8.58
Price at several pairs bought = $4.29
Total spending = $25.74
Suppose:
Number of pairs of socks = N
According to given condition
8.58 + (4.29 x N) = 25.74
4.29 x N = 25.74 -8.58
4.29 x N = 17.16
N = 17.16 / 4.29
N = 4
Check:
8.58 + (4.29 x 4) = 25.74
8.58 + 17.16 = 25.74
25.74 = 25.74
Pairs of socks bought = 4 + 1 = 5 pairs
It is not correct to say that a company ought to rent more capital "if the marginal output of capital is smaller than the rental rate of capital." Hence we conclude that the statement is FALSE.
This is further explained below.
<h3>What is
the marginal product?</h3>
Generally, In neoclassical economics, the marginal product is the change in output that occurs from utilizing one more unit of a particular input, assuming that the values of all other inputs remain constant. Marginal product is the difference in output that occurs when an extra unit of input is used.
In conclusion, if the MPK is greater than the rental rate of capital, then the only time a firm should employ more capital is when they need it.
This is the only time that a company should employ additional capital.
It is not correct to say that a company ought to rent more capital "if the marginal output of capital is smaller than the rental rate of capital."
Read more about the marginal product
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Question:
The __________ the proportion of total return that is in the form of price appreciation, the __________ will be the value of the tax-deferral option for taxable investors.
A) greater; greater
B) greater; lower
C) lower; greater
D) Cannot tell from the information given
E) None of the options
Answer:
The correct answer is A) greater; greater
That is, the greater the proportion of total return that is in the form of price appreciation, the greater will be the value of the tax-deferral option for taxable investors.
Explanation:
To understand the above, you need to know that Total Return in this instance means capital appreciation and all the form of income receiveable on an investment. When the prices of one's investment (e.g. stock or share in a company) appreciates, it becomes more appealing for investors to defer payment of tax.
Cheers!
Answer:
Following are the solution to this question:
Explanation:
Please find the complete question in the attached file.
Credit cost depreciation
(Detailed: )
DR Acc.
CR Dep. Exp. )