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sergejj [24]
3 years ago
8

An appraiser is trying to find the value of a piece of property. He looks at the land first and figures its value, and then he d

etermines the value of the building by subtracting depreciation factors. After he has determined these facts, he adds the cost of land to the cost of the building to determine the value of the piece of property. Why does he do this?
Business
1 answer:
Setler [38]3 years ago
5 0

Answer:

In appraising, land is never depreciated, as are buildings.

Explanation:

Generally land and buildings are separable assets and are been accounted for separately, even when acquired together.

In the other hand, land asset is not depreciated, because it is considered to have an infinite useful life. This distinctively makes it unique amongst all asset types; it is the only one for which depreciation is prohibited.

Nearly all fixed assets have a useful life, after which they no longer contribute to the operations of a company or they stop generating revenue. During this useful life, they are depreciated, which reduces their cost to what they are supposed to be worth at the end of their useful lives (which is known as salvage value). Land, however, has no definitive useful life, so there is no way to depreciate it.

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The following scenario applies to the next three questions. At the start of the current period, Alberich Jewelers had an invento
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Answer:

Alberich Jewelers

The gross profit that Alberich should report is 760.

Explanation:

a) Data and Calculations:

Cost of gold ring purchased first = $640

Cost of gold ring purchased next = $720

Cost of gold ring purchased recently = $750

Sale of one gold ring = $1,400

Using the FIFO method of inventory, the gross profit for the gold ring sold is based on the first gold ring purchased, as follows:

= Sales Revenue - FIFO cost of inventory

= $1,400 - $640

= $760

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2 years ago
Gabriel Corporation has fixed costs of $180,000 and variable costs of $8.50 per unit. It has a target income of $268,000. How ma
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Answer:

uh... 180 divide by 8.5... multiply to 12

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3 years ago
The absence of cyclical unemployment is evidence that?
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D) Business production is near full capacity and there is little unemployment.
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3 years ago
45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price
kakasveta [241]

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

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Answer:

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The formula to compute the book value per share is

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By dividing the total  stockholders' equity by the number of common stock shares outstanding we get the book value per share

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