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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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In general, employers will hire an individual if they <em>believe </em> that the individual would provide more financial value compared to the amount of his/her salary. They would not necessarily higher you based on your academic performance because often times you would had to start learning everything related to the job again from the scratch.

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Suppose that the market equilibrium price for a good is $3.00. A nonbinding price ceiling in this market will result in a price
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Answer:

above $3.00

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Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 140 shares of its common st
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Answer: $70

Explanation:

First, we need to calculate the purchase price per share and this will be:

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= $50 per share

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