1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Butoxors [25]
3 years ago
8

On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $280,000. An old building on the proper

ty was demolished, and construction began on a new building which was completed on November 1, 2014. Costs incurred during this period are listed below: Demolition of old building $ 20,000 Architect's fees 35,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 1,340,000 (Salvaged materials resulting from demolition were sold for $10,000.)
Nelson should record the cost of the land and new building, respectively, as
Business
1 answer:
seropon [69]3 years ago
7 0

Answer:

Land = $295,000

Building = $1,375,000

Explanation:

The computation of cost of the land and new building is shown below:-

Land = Parcel of land + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials resulting from demolition were sold

= $280,000 + $20,000 + $5,000 - $10,000

= $305,000 - $10,000

= $295,000

Building = Architect's fees + Construction costs

= $35,000 + $1,340,000

= $1,375,000

We simply applied the above formulas

You might be interested in
Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in
Strike441 [17]

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs

Change in Value of firm

=Net Effect of Debt Financing

=Present Value of Interest Tax Shield (financial distress costs ignored)

= DebtValue * Cost of Debt * Tax Rate Interest Rate

= $1,000 * 10% * 20% 10%

=$200,

corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.

Learn more about tax rate here: brainly.com/question/25791968

#SPJ4

3 0
2 years ago
your going to a pool but is one hour away and your father says we are going to the shop that is 2 minutes away witch one will yo
ANTONII [103]
Depending on how much time you have, I would choose the pool because I am not a fan of shopping in supermarkets they make me feel sick sometimes so pool is better to me
4 0
3 years ago
Procter & gamble is well known for its use of __________ branding because every product in p&g's portfolio has a differe
taurus [48]

Answer:

Individual branding

Explanation:

Procter & gamble is well known for its use of individual branding because every product in p&g's portfolio has a different brand name.

Individual branding can be defined as a market strategy in which every products sold by a firm has its own unique brand name. Individual branding can also be called "multibranding", "individual product branding", and "flanker brand".

Firms utilizes individual branding strategy in order to target different market segment. Individual branding helps to protect the other products produced by a company if one of them fails.

Each brand produced has a unique identity and name even though they are produced by the same firm. This allows the firm to to separate the image and reputation of each product and fix a different price for each product.

8 0
3 years ago
Investors are willing to purchase stocks having high P/E ratios because:
skelet666 [1.2K]

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

4 0
3 years ago
Which is correct? please help​
choli [55]

Answer:

c

Explanation:

because if you have all new employees people won't see you as a serious company

4 0
2 years ago
Read 2 more answers
Other questions:
  • 1. Gerald and Moira Johnson, are married taxpayers with two children, Michael and Oliver. Oliver lives with the Ryans and Michae
    9·1 answer
  • Which of the following statements are true regarding dividends?
    11·1 answer
  • A job advertisement reads as follows: "Wanted, bright young men to sell athletic club memberships. Interested applicants should
    6·1 answer
  • You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock is
    13·1 answer
  • The Republic of South Africa exports edible fruits and nuts into the common market known as the European Union, and imports from
    11·1 answer
  • How will hiring you benefit our restaurant
    5·1 answer
  • Of the four attributes of a national or country-specific environment that have an important impact on the global competitiveness
    7·1 answer
  • White Leo Autos manufactures and markets four different cars, Leo Sport, Leo Prestige, Leo Spark, and Leo Ease. These four produ
    10·1 answer
  • Which pricing strategy is characterized by the setting of a low introductory price to help drive consumer awareness and create a
    9·1 answer
  • with this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be than
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!