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Nataliya [291]
3 years ago
15

"Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $460,000. In addition to the purchase price, FVI makes the follow

ing expenditures related to the acquisition: broker's commission, $26,000; title insurance, $1,600; and miscellaneous closing costs, $5,400. The warehouse is immediately demolished at a cost of $26,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land."
Business
1 answer:
Artyom0805 [142]3 years ago
5 0

Answer:

Cost of land = $519,000

Explanation:

<em>According to  International Accounting Standards (IAS)  16, property plants and equipments, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

<em>Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.</em>

Note that all the costs incurred by FVI as reported all fall into the above definition of  cost of land.

Therefore the cost of the land would  be

=460,000 + 26,000 + 1,600+ 5,400 + 26,000

= $519,000

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Peak performance sporting goods company has reported net income after taxes = $3,750,000, with 18,250,000 shares outstanding. ba
LiRa [457]
<span>The basic earning per a share can be calculated by dividing the net income after taxes by the number of shares outstanding. Thus we have that the basic earning per share is 3,750,000/18,250,000 = .20547 dollars per share. The basic earning per share for peak performance is .205 dollars per share.</span>
7 0
2 years ago
How did the extra, one-time payment of $100 affect the total interest Janet pays on the loan?
Shkiper50 [21]

Amortization simply means the practice of spreading the cost of an intangible asset over the useful life of the asset.

Your question is incomplete as you didn't provide the amortization table. Therefore, an overview of amortization will be given.

It should be noted that amortization is usually expensed on a straight-line basis. In such a case, the same amount will be expensed for every period over the life of the asset.

For example let's assume that Janet borrows $2000 at 4% for 2 years. The interest that will be paid will be:

= $2000 × 4% × 2

= $2000 × 0.04 × 2

= $160

The interest here is $160. Based on the question, since $100 has been paid, it should lead to a lower interest that will be paid on the loan.

Read related link on:

brainly.com/question/25443577

7 0
2 years ago
An asset has an average historical rate of return of 10.1 percent and a variance of 0.0116751. What is the upper percentage rang
pochemuha

Answer:

20.91%

Explanation:

Provided information

Average historical rate of return = 10.1 %

Variance = 0.0116751

By considering the above information, the standard deviation would be

= Square root of Variance

= 10.81%

So the upper percentage range of return would be

= Standard deviation + standard deviation

= 10.81% + 10.1%

= 20.91%

Since we have to find out the upper percentage so we added it otherwise we have to deduct it

8 0
3 years ago
A manager cannot complain that the budget was unrealistic and impossible to meet when
Bess [88]
I would say that if the manager was consulted on the budget then he/she couldn't complain that it was unrealistic and impossible to meet and if they had any problems with it then they should have spoken up when the budget was being formulated.
6 0
3 years ago
A machine with a cost of $144,000, current year depreciation expense of $20,500 and accumulated depreciation of $92,000 is sold
Svetllana [295]

Answer:

a. $20,500

Explanation:

The cashflow using the indirect method has basically 3 segments namely; Cashflow from operating activities, Cashflow from investing activities and Cashflow from financing activities.

Cashflow from operating activities considers the net profit before tax and then adjustments for non cash items like depreciation. Hence from the question given, the current year depreciation ($20,500) is a part of the Cashflow from operating activities.

Other cost elements stated in the question are considered under investing activities.

5 0
3 years ago
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