Answer:
$13,200 per year
Explanation:
Amount incurred to improve the office space = $
Improvement expected to yield benefit = 10 years
Remaining life on it's lease = 8 years
Since the office space is not going to remain with Phoenix after the lease period, it means that the improvement expenses will be expensed over the remaining lease period I.e 8 years.
Therefore, the amount of expense that should be recorded the first year related to improvements can be calculated as;
= Amount incurred to improve the office space ÷ remaining life on its lease
= $105,600 ÷ 8
= $13,200 per year
Answer:
Purchase money mortgage.
Explanation:
A purchase money mortgage is the loan that is given to the individual buying the property.
This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.
The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.
Answer:
By formation of legally binding contract.
Explanation:
Contacts are a good way for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments. Because of the high quality expected in the goods procured, having a legally enforceable contact will make the vendor provide high quality products that meets required specifications.
However when contracts dictate a particular price, so if the market price of input were to go down we will still be obligated to buy at the higher price from the vendor.
Answer:
D) 1,200 shares held at a cost basis of $37.50 per share
Explanation:
Since the company paid a stock dividend, it increased the number of stocks held by the stockholders. The investor initially had 1,000 shares plus a 20% dividend = 1,000 x 1.2 = 1,200 shares. Since each stock should theoretically be worth less, his/her basis should decrease. The basis for each stock was $44(price) + $1(commission) = $45, after the dividend is paid it will be adjusted to $45 / 1.2 = $37.50 per stock
Answer:
Hazard Control
Explanation:
Hazard control can be defined as the a worldwide accepted system that is setup by industries or companies to ensure the reduction or elimination of work hazards.
It is usually passed across to managers through training and the managers in turn ensure that the employees are trained as well thus ensuring that the practices become standard practices in the organization.
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