1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Natasha2012 [34]
3 years ago
11

Geo Co. purchased a building for $400,000. In addition, Geo paid $35,000 closing fees (including title and lawyer fees). Geo als

o paid $60,000 to modify the building, changing the layout specifically for Geo's needs. Geo should record the building at:_________.
Business
1 answer:
Vedmedyk [2.9K]3 years ago
8 0

Answer: $495,000

Explanation:

ALL costs that went into the DIRECT acquisition of the asset as well as COSTS TO SET IT UP for use by the firm should be accounted for in the amount recorded.

In this case that would mean that the cost price, the closing fees and the modification fees all need to be accounted in the final amount.

That would be

$400,000 + $35,000 + $60,000

= $495,000

$495,000 should be recorded as the building's cost.

You might be interested in
You and your twin sister, both 18 years of age, were in a car accident. She had a clean break across the humerus and the upper a
tigry1 [53]

Answer:

B) You will be given antibiotics to reduce bacterial infection, whereas your sister will not.

Explanation:

Since you required pins to be inserted (your skin was injured), the possibility of an infection exists. In order to try to prevent or control any bacterial infection, you need to take antibiotics.

On the other hand, your sister doesn't need to take antibiotics because her skin wasn't hurt.

7 0
3 years ago
Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equip
Alja [10]

Answer:

Preparation of Cash flow statement is below:-

Explanation:

Please find the full information of question

The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.

                    Nosker Company

            Statement of cash flow

         For the year ended 31 December, 2017

Cash flow from operating activities

Receipt from customers       $228,300

($242,100 - $13,800)

Less Cash payment

Suppliers                                $173,500

($175,500 + $10,600 - $12,600)

Operating expenses             $8,300

(23,900 - $15,600)

Income tax expenses           $900

($8,100 + $900)

Interest expenses                $35,100

Cash flow from investing activities

Sale of equipment                                       $8,700

Net cash provided by Investing activities  $8,700

Cash flow from financing activities

Issuance of company stock                         $4,600

Less: Land Redemption                                $6,200

Less: Payment of cash dividend                   $25,400

Net cash used by financing activities           $27,000

Net Increase in cash                                         $16,800

Beginning cash                                                 $19,600

Cash at end of period                                       $36,400

7 0
3 years ago
Company X currently has a capital structure that consists of 40% equity, 20% preferred equity, and 40% of debt. The risk-free ra
Sindrei [870]

Answer:

14.58%

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate) + weight of preferred equity x dividend yield

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

r= 3% + 1.1 x 8 = 11.8

equity = 0.4 x 11.8% = 4.72

d = 0.4 x 5 x (1 -0.21) = 1.58

p = 0.2 x 6 =  1.2

11.8 + 1.58 + 1.2 =

8 0
3 years ago
Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities
loris [4]

Answer:

the cash inflow from the sale of securities is $7,000

Explanation:

The computation of the cash inflow from the sale of securities is shown below:

= Opening balance + purchase marketable securities + gain on the sale of marketable securities - ending balance

= $86,000 + $10,000 + $1,000 - $90,000

= $97,000 - $90,000

= $7,000

hence, the cash inflow from the sale of securities is $7,000

8 0
3 years ago
From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of
Viktor [21]
Yes it is at the all the way at the end of it
7 0
2 years ago
Other questions:
  • A. alice produces more lemonade and betty produces more pizzas.
    14·1 answer
  • Inventory reduction via JIT is an effective tool for identifying
    10·1 answer
  • The dodd-frank wall street reform and protection act stipulated that if more than $1 million is collected, the whistle-blower is
    11·1 answer
  • In the trial balance, all the accounts with debit balances are listed before the accounts with credit balances.
    6·1 answer
  • Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted
    15·1 answer
  • True or false. Unemployment compensation is generally unavailable for people who quite a job without good cause
    10·1 answer
  • Bonds are securities that can be readily bought and sold. A bond issue consists of a number of bonds, usually in denominations o
    14·1 answer
  • Graff, Incorporated, has sales of $49,800, costs of $23,700, depreciation expense of $2,300, and interest expense of $1,800.
    11·1 answer
  • Public transportation is an inferior good. if consumers' incomes decrease, this will cause:____.
    10·1 answer
  • If the aircraft turns to the heading indicated by the heading marker, it will?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!