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Alecsey [184]
3 years ago
12

Riverwood Properties bought three lots in a subdivision for a? lump-sum price. An independent appraiser valued the lots as?

Business
1 answer:
Law Incorporation [45]3 years ago
8 0

Answer:

Explanation:

The cost allocation of each lot is presented below:

                                          (A)                      (B)                            (A × B)

Lot       Appraised Value  Percentage  Purchase value          Allocated cost      

Lot 1        $76,500               15%               $355,000                 $53,250

Lot 2       $229,500             45%             $355,000                  $159,750

Lot 3      $204,000             40%            $355,000                   $142,000

Total      $510,000              100%                                              $355,000

Now the journal entry would be

Land - Lot 1 $53,250

Land - Lot 2  $159,750

Land - Lot 3   $142,000

     To Cash A/c $355,000

(Being the lots are purchased for cash)

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Daniel is planning to earn money over the summer mowing lawns in the neighborhood to buy a scooter. The scooter he wants costs $
alexdok [17]

Answer:

165 lawns

Explanation:

The computation of the number of lawns is shown below:

= The cost of scooter ÷ Profit per lawn

where,

The cost of the scooter is $2,200

And, the profit per lawn is

= Charging per lawn - estimated cost per lawn

= $16 - $2.7

= $13.3

So, the number of lawns is

= $2,200 ÷ $13.30

= 165 lawns

Basically we dividing the cost of scooter by the profit per lawn

6 0
3 years ago
Technological advancement creates unemployment in firms that shut down or labor that is laid off. Wealth in this case is a. ​Des
PSYCHO15rus [73]

Answer:

​Created, since the dislocated labor and resources are absorbed by new firms created through the technological innovation, moving them to higher value use.

Explanation:

Technological advancement results in more efficient processes that requires a unique expertise along with higher compensation.

In this scenario labour is disengaged from closed businesses and some were laid off.

These disengaged workers will eventually develop skills that will give them employment in the technologically advanced companies.

Since wages are higher in these companies, there will be an increase in the wealth of workers.

For example a factory worker in production line is paid less than a software engineer. This is because the work of a software engineer is more specialised and therefore higher paying.

6 0
3 years ago
Which of the following statements about depreciation is correct?
Oliga [24]

Answer:

The correct answer is letter "C": To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

Explanation:

Depreciation indicates how much value was used up for an asset. It also tries to match an asset's cost to the profit this helps the business collect. Depreciation calculations used as income tax deduction offer companies and annual allowance for the use and deterioration of tangible assets. Besides, depreciation must be added to the company's accounting profits to determine the firm's total inflow.

4 0
2 years ago
Some economists observe that higher profit rates in large oligopolies stem from the greater efficiency arising from _____ in the
Natasha2012 [34]

Some economists study that higher income rates in massive oligopolies stem from the greater performance bobbing up from economies of scale in these large companies.

Oligopoly traits include high barriers to new entry, fee-setting ability, the interdependence of companies, maximized revenues, product differentiation, and non-charge opposition.

Oligopolies motivate good sized Inefficiencies – to the Detriment of purchasers. part of the cause a few economists are hesitant to simply accept the market electricity explanation is the scarcity of facts that lets in them gauge the intensity of competition among corporations.

A competitive situation in which there are only some dealers (of products that may be differentiated but no longer to any great volume); each vendor has a high percentage of the market and can not afford to ignore the actions of the others.

Learn more about oligopolies stem here: brainly.com/question/3005866

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4 0
1 year ago
The company's wacc is 10.5%. what is the irr of the better project? (hint: the better project may or may not be the one with the
Inessa05 [86]

The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.

Solution:

NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776

IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0

IRR =12.80%

NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4

=$67.01

IRR of Project L=

-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0

IRR =12.700%

Project L is better than Project S since L has higher NPV

IRR of Project L is 12.7%.

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5 0
1 year ago
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