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Daniel [21]
3 years ago
13

A company rents a building with a total of 100,000 square feet, which are evenly divided between two floors. The space on the fi

rst floor is considered twice as valuable as that on the second floor. The total monthly rent for the building is $30,000.
How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?

A. $6,000.
B. $5,000.
C. $3,000.
D. $4,000.
E. $2,000.
Business
1 answer:
wel3 years ago
3 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

A company rents a building with a total of 100,000 square feet, which are evenly divided between two floors. The space on the first floor is considered twice as valuable as that on the second floor. The total monthly rent for the building is $30,000.

How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?

Depreciation= (10,000/100,000)*30,000*2= 6,000

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Answer: Option B

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Hence from the above we can conclude that the correct option is B.

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3 years ago
The process of generating and choosing from a set of alternatives to solve a problem is called:________a. Intuition. b. Satisfic
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Answer:

c. Decision Making

Explanation:

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3) Must be (normative): analysis of individual decisions, taking into account decision-making or communicative reasoning, and the constant, unchanging choices caused by these

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5 0
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djyliett [7]
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4 0
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Vera_Pavlovna [14]
<h3><u>Answer;</u></h3>

Financial plan

<h3><u>Explanation;</u></h3>
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4 0
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Read 2 more answers
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the compan
Mice21 [21]

Answer:

Part 1

Cost of Equipment Sold = $9300

Accumulated Depreciation of Equipment Sold = $ 1100

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Part 2

<em>Net Cash Flows from Operating Activities</em>

Add Back (Positive) to Operating Profit for the year : Loss on sale of equipment $ 2900

Part 3

<em>Net Cash flows from Investing Activities</em>

Add (Positive) Proceeds from Sale of Equipment $ 5300

Explanation:

Part 1

<em>Cost of Equipment Sold:</em>

The figure is obtained from Equipment At Cost Account.

Open the Account as follows:

Beginning Balance $ 20300 (debit), Ending Equipment $ 11000, Balancing figure $ 9300 (20300-11000) is the cost of equipment sold.

<em>Accumulated Depreciation of Equipment Sold</em>

The figure is obtained from Accumulated Depreciation.

Open the Account as follows:

Beginning Balance $ 1980 (credit), Profit and loss - Depreciation $ 870 (credit), Ending Balance $ 1750 (debit), Balancing figure $ 1100 (1980+870-1750) is the Accumulated Depreciation on Equipment Sold

<em>Cash Received on Sale</em>

This figure is figure is obtained from Equipment Disposal Account.

Open the Account as follows:

Cost of Equipment Sold $ 9300 (debit), Accumulated depreciation on equipment sold $1100(credit),Loss on Sale of Equipment $2900(credit),the Balancing figure $5300 (9300-1100-2900)

Part 2

Loss on sale of Equipment is the only Income Statement Item affecting the Operating Activity of the Cash Flow Statement.

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Part 3

Sale of Equipment results in Cash Inflow and affects the Cash Flows from Investing Activities Section of Cash Flow Statement.

Hence a positive amount should be added to reflect this inflow.

4 0
3 years ago
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