Given:
280,000 for the land
110,000 for the old bldg
33,500 to tear down old bldg
47,000 to fill and level the land
1,452,000 new bldg
87,800 for lighting and paving a parking area for the new bldg.
Entries: Debit Credit
Land 470,500
Cash 470,500
(280,000 + 110,000 + 33,500 + 47,000 = 470,500)
Building 1,452,000
Cash 1,452,000
Land Improvement 87,800
Cash 87,800
Expenses incurred in preparing the land for its purpose is classified under the land account. Land does not depreciate because its useful life is unidentified.
Land improvement account is used for expenses incurred to add functionality to the land and these output has useful life and is depreciated.
Answer:
false
Explanation:
Interest is the cost of using credit. The applicable interest rate determines this cost. Like most other commodities, interest rates are subject to the forces of demand and supply.
If the demand for credit increases, then the cost of credit will increase, meaning interest rates will increase. On the other hand, a decline in the demand for loans will cause interest rates to reduce.
Answer:
a. Earnings per share = $5
Expected dividend per share(D1) = 70% x $5 = $3.50
Current market price(Po) = D1/Ke - g
Current market price(Po) = $3.50/0.12-0.06
Po = $3.50/0.06
Po = $58.33
Growth rate(g) = b x r
= 0.3 x 0.2
= 0.06
Price-earnings(P/E) ratio = market price per share/Earnings per share
= 58.33/5
= 11.67
b. Earnings per share = $5
D1 = 80% x $5 = $4
Po = D1/Ke - g
Po = $4/0.12-0.04
Po = $50
g = b x r
g = 0.2 x 0.2
g = 0.04
P/E ratio = $50/$5
P/E ratio = 10
Explanation:
In this question, there is need to determine the growth rate, which is a function of return on investment and plowback ratio. Then, we will calculate the current market price as shown above. Finally, the current market price is divided by earnings per share in order to obtain the P/E ratio.
Answer:
A case of ethical conduct
Explanation:
Mazin is caught in an ethical dilemma here, however compromising and yielding to offer bribes to local officials could put him in jail and soil his reputation and that of his organization forever. Therefore bribing is not an option here. A first option could be to check or negotiate with a higher authority such as the state government or the federal government that awarded the contract. Mazin could apply his skills to get a higher government authority to act in the favor of the company and supersede all resistance in the local authority. He could also seek the help of his manager in this instance as this would be profound feedback on what could be delaying the final contract agreement.
Answer:
Value of Marginal Product= 2
Worker Marginal Product = 12
Explanation:
Calculation for what is the value of the marginal product of the last worker he hired
Using this formula
Wages= MP*P
Let plug in the formula
12 = MP*6
Marginal Product = 12/6
Marginal Product= 2
Therefore the value of the marginal product of the last worker he hired will be 2
Now let calculate the worker marginal Product
Worker Marginal Product = 2*6
Worker Marginal Product = 12
Therefore the Worker Marginal Product will be 12
