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PilotLPTM [1.2K]
3 years ago
9

Montgomery Industries spent $700,000 in 2017 on a construction project to build a library. Montgomery also capitalized $35,000 o

f interest on the project in 2017, Montgomery financed 100% of the construction with a 12% construction loan The project was completed on September 30, 2018. Additional expenditures in 2018 were as follows: $ 99,000 189,000 45,000 73,000 Feb. 28 Apr. 30 Jul. 1 Sept. 30
Required Determine the completed cost of the library. (Do not round intermediate calculations.) Completed cost of the library 747.960
Business
1 answer:
slavikrds [6]3 years ago
8 0

Answer:

The Completed lost of Library is

Explanation: $1224880

Solution

Given that:  

                                     Amount Period Average expenditure

Accumulated

expenditure Jan 1         735000     9/9         735000

Feb. 28                          99000       7/9          77000

Apr. 30                          189000      5/9          105000

Jul. 1                               45000       3/9           15000

Sept. 30                         73000        0                  0

Average Accumulated

expenditure                   1141000                       932000

Interest to be capitalized = 932000*12%*9/12= $83880

The Completed lost of Library = 1141000+83880= $1224880

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I'm going to say the answer is B ! I could be wrong but this is what i think :)

Explanation:

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3 years ago
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning
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Answer:

$24,160 favorable

Explanation:

The computation of the total contribution margin sales volume variance is given below:

The Budgeted contribution margin per pound of MT is

= $40 - $20

= $20 per pound

Now the budgeted contribution margin per pound of ET is

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= $24  per pound

MT's contribution margin sales volume variance is

= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound

= (3960 - 4000) × $20

= $800 Unfavorable

ET's contribution margin sales volume variance is

= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound

= (5,040 - 4000) × $24

= $24,960 favorable

Now the total contribution margin sales volume is

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8 0
3 years ago
Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1
Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

\frac{57,000*(1 - 0.23)}{0.13}

= \frac{57,000*0.77}{0.13}

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

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\frac{337,615.38} {(1 - 0.23) * 0.30}

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.1}

= $438,461.54

5 0
3 years ago
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Answer:

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An organization's strategy sets the overall direction for its business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

Basically, for an organization to formulate strategies that are in tandem with its mission, the organization will need to assess internal weaknesses and strengths, know its core competencies, analyze its rivals (competitors) and examine the external environment.

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Margaret [11]

Answer:

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Explanation:

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5 0
3 years ago
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