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Lelechka [254]
2 years ago
9

Fullerton Waste Management purchased land and a warehouse for $610,000. In addition to the purchase price, Fullerton made the fo

llowing expenditures related to the acquisition: broker’s commission, $31,000; title insurance, $3,500; miscellaneous closing costs, $6,500. An independent appraisal estimates the fair values of the land and warehouse at $497,000 and $213,000, respectively.
Determine the amounts Fullerton should capitalize as the cost of the land and the building.

Capitalized cost of land = $

Capitalized cost of building = $
Business
1 answer:
iragen [17]2 years ago
3 0

Answer:

Capitalized cost of land = $455,700

Capitalized cost of building = $ 195,300

Explanation:

All the costs of purchasing the land and warehouse should be capitalized so we first have to sum all the costs

Cost of land and warehouse $610,000

+

Brokers comission $31,000

+

title insurance $3,500

+

miscellaneous closing costs $6,500

------------------

Total cost to be capitalized $651,000

Then you must devide into cost of land and cost of building

For this we will use the independent appraisal estimates

Land $497,000/($497,000+$213,000)=0,7

Building $213,00/($497,000+$213,000)=0,3

Then Capitalized cost of land would be $651,000*0,7=$455,700

Capitalized cost of building would be $651,000*0,3=$195,300

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Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 4.20 percent that sells for $90.86 per share. I
natali 33 [55]

Answer:

4.62%

Explanation:

Bethesda had an issue with preferred stock outstanding with a coupon rate of 4.20 %

It is sold at $90.86 per share

The par value is $100

Therefore the company's preferred stock can be calculated as follows

= 4.20/100 × 100 / 90.86/100 ×100

= 4.20/90.86

= 0.0462 × 100

= 4.62%

3 0
2 years ago
Look at the table price elasticity. what is the price elasticity of demand (using the midpoint formula) between $2.50 and $2.25?
hodyreva [135]
The difference is .25
8 0
3 years ago
What is true of a perfectly competitive market?
Alexeev081 [22]

The correct answer is B.) The problem of scarcity does not exist.

Because since it is a 'perfectly competitive' market then scarcity shouldnt exist.

-Autumn Leaves

7 0
2 years ago
A federal agency that engages primarily in commercial activities, produces revenues, and requires greater flexibility than most
jeka57 [31]

Answer:

government corporation

Explanation:

A government corporation is a government-owned firm that operates with the same integrity as a private company, except that the owner is government. Every government company is chartered by legislative act. Government corporations are typically created in markets where there is a natural monopoly, they are significant to the country's infrastructure, natural resources, and general public interest.

4 0
3 years ago
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
Karo-lina-s [1.5K]

Answer:

The answer is E. $24,000

Explanation:

Straight line depreciation method equals

Cost of asset - salvage value / number of years.

Cost of asset is $135,000

Salvage value is $15,000

Number of years is 5 years

$135,000 - $15,000/5 years

$120,000/5 years

=$24,000

Straight line method of depreciation has equal amount all through the year.

The first year through it end life.

Therefore, machines' first year depreciation under the straight-line method is $24,000

6 0
3 years ago
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