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babymother [125]
3 years ago
14

Culver Co. purchased land as a factory site for $440,000. The process of tearing down two old buildings on the site and construc

ting the factory required 6 months. The company paid $46,200 to raze the old buildings and sold salvaged lumber and brick for $6,930. Legal fees of $2,035 were paid for title investigation and drawing the purchase contract. Culver paid $2,420 to an engineering firm for a land survey, and $74,800 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,650, and a liability insurance premium paid during construction was $990. The contractor’s charge for construction was $3,014,000. The company paid the contractor in two installments: $1,320,000 at the end of 3 months and $1,694,000 upon completion. Interest costs of $187,000 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Culver Co. Assume that the land survey was for the building.
Business
1 answer:
postnew [5]3 years ago
5 0

Answer:

The cost of land is $482,955 and cost of building is $3,279,210.

Explanation:

According to the scenario, the computation of the given data are as follows:

The cost of land = Purchase cost + Raze cost - Sold salvage + Legal fees + Title insurance

By putting the following value, we get

= $440,000 + $46,200 - $6,930 + $2,035 + $1,650

= $482,955

Now, The cost of Building = Land survey + Drawing plans + Liability insurance + Contractor's charge + Interest

By putting the value, we get

= $2,420 + $74,800 + $990 + $3,014,000 + $187,000

= $3,279,210

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In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of
Ilya [14]

Answer:

Kindly check attached picture

Explanation:

In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of its $1 par common stock at $47 per share.

Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:

a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.

b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.

c. On august 13, 2018, borland sold 1 million shares at $55 per share.

d. On december 15, 2018, borland sold 2 million shares at $50 per share.

Kindly check attached picture for detailed explanation

6 0
3 years ago
On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influenc
Yuri [45]

Answer:

$155,000

Explanation:

Calculation to determine the book value of the investment that should be reported at year end by All Good Company

Initial investment (6,000* $10.00 per share) $60,000

Add: Net income ($450,000*30%) $135,000

Less: Dividend ($40,000)

Ending balance of investment $155,000

($60,000+$135,000-$40,000)

Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000

8 0
2 years ago
Give some examples of each of the three ""occasions for decision"" cited by Chester Barnard. Explain in your own words why Barna
Likurg_2 [28]

Answer: The three "occasions for decision" are:

1. From authoritative communications from superiors

2. From cases referred for decision by subordinates

3. From cases originating in the initiative of the executive command

Explanation: Examples of the three "occasions for decision" are:

1. From authoritative communications from superiors: an increase in the annual target of a sales force, passed on from the director to the sales manager.

This type of decision making is usually about the application of an instruction.

2. From cases referred for decision by subordinates: decision to employ branch level staff, whose engagement is within the right of the branch manager  

This occasion for decision shows a lack of authority in subordinates or an inability to be decisive in the subordinate.

3. From cases originating in the initiative of the executive command: the CEO deciding to take his brick and mortar business completely online.

This is a decision that that is totally the product of the executive head's thoughts, it is usually a strategic level decision and opens his authority to criticism.

Chester Barnard believed that this is the most important occasion for decision because the executive head is best placed to make these decisions in the organization. He has the authority as well as resources to ensure that the decision is followed through.

I also agree that this is the most important occasion for decision. While they are difficult decisions, they can determine the direction of an organization.  There is no one better qualified than the executive command to make or initiate these decisions. Also, it is part of their responsibility to make these decisions.

6 0
3 years ago
You have the opportunity to opt into the brs because you are either an active component (ac) member who will have completed fewe
Softa [21]
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5 0
2 years ago
To calculate your return on a stock: If you bought a stock at $80 and earned a $3.00 dividend over the year and at the end of th
grandymaker [24]
New value: $87
new-orig= $7
7/80= 0.0875=87.5%
7 0
3 years ago
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