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Sever21 [200]
3 years ago
12

g Cole Co. began constructing a building for its own use in January 2021. During 2021, Cole incurred interest of $50,000 on spec

ific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 2021 was $40,000. What amount of interest should Cole capitalize
Business
1 answer:
slava [35]3 years ago
7 0

Answer: $40,000

Explanation:

Interest that is accrued as a result of a building should be capitialized to the cost of that building. The amount of interest payment that is due to the building will simply be the interest payment that the company would have avoided incurring had it not undertaken the construction of the building.

This amount is represented by the interest computed on the weighted-average amount of accumulated expenditures which in this case is $40,000 so that is the amount that should be capitalized by Cole Co.

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Which of the following series uses commas​ correctly?
Serjik [45]
Incorrect. You don’t need a comma after “crocodiles” or before “other”
7 0
3 years ago
Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Fees earned $900,
Virty [35]

Answer:

Net income is $135,00 from the income statement.

Explanation:

In the Income Statement for a particular year, all expenses all expenses for the year are deducted from the income to arrive at net income for that year. Based this, we have:

Paradise Travel Service Income Statement For the Year Ended May 31, 2018

<u>Details                                         ($)   </u>

Fees earned                          900,000

Office expense                    (300,000)

Miscellaneous expense         (15,000)

Wages expense                  <u> (450,000) </u>

Net income                          <u>  135,000 </u>

Therefore, net income is $135,00 from the income statement.

6 0
3 years ago
You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills
postnew [5]

Answer: increase

Explanation:

You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills with more IBM stock , the expected portfolio return will increase, ceteris paribus

The expected return for a particular investment are the returns which a an investor expects when he or she invests in a particular investment. In the above scenario, there'll be an increase in the expected portfolio return.

7 0
3 years ago
Given the $300 cost per person of each public good, what are adams’ net benefits for each public good individually?
mart [117]
<span>The net benefits of each public good will be the total cost of the project minus the $300 cost per person. If the project costs 600$ the net benefits for each public good will be $300. $600(total cost) - $300(cost per person) = $300(net benefits)</span>
7 0
3 years ago
Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her $21,000 per month i
nataly862011 [7]

Answer:

A. N0

B. She may likely bargain for the payments that was reason been that she expects the payments to be in a lower marginal tax bracket in 2021

C. NO

Explanation:

a. No .Based on the information given the amount of $252,000 was NOT constructively received in the year 2020 reason been that She has the amount of $132,000 which is a deferred income amount that

is not constructively received in 2019 and the reason why the amount was not received was because been under the main contract terms she did not have the sole right to receive the income in the year 2020.

b. Freda's willingness to spread her salary over a longer period of time may be due to the fact that She may likely bargain for the payments reason been that she expects the payments to be in a lower marginal tax bracket in the year 2021

c. Based on the information given she is NOT in constructive receipt of the income in the year 2020.

4 0
3 years ago
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