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Keith_Richards [23]
3 years ago
13

On March 1, 2017, Carla Vista Co. acquired real estate, on which it planned to construct a small office building, by paying $84,

500 in cash. An old warehouse on the property was demolished at a cost of $9,100; the salvaged materials were sold for $1,880. Additional expenditures before construction began included $1,380 attorney’s fee for work concerning the land purchase, $4,950 real estate broker’s fee, $8,880 architect’s fee, and $14,900 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.
Business
1 answer:
marissa [1.9K]3 years ago
5 0

Answer:

Land 112,980

Explanation:

The driveway and parking lot are not part of the land. That is a decision of the company and will be applied on a diferent account, Parking lot

All the other cost are required to acquire the land and leave the land ready to use.

The salvage for the demolition decrease the cost for the land.

Purchase              84,500

demolition               9,100

salvaged materials (1,880)

atorney's fee           1,380

broker's fee            4,980

architect's fee       14,900

Total                     112,980

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Zwick company bought 28,000 shares of the voting common stock of handy corporation in january 2018. in december, handy announced
OLEGan [10]

Answer:

Zwick company's dividend revenue from Handy corporation in December 2018 would be = $280,000

Explanation:

Since Zwick company has bought 28,000 shares of Handy Corp. and Handy has announced a cash dividend of $10 per share. We will calculate Zwick company's dividend revenue would be,

Dividend revenue = ownership shares x dividend per share

Dividend revenue = 28,000 shares x $10 per share = $280,000

5 0
3 years ago
A company has 5,000 shares of $100 par preferred stock and 50,000 shares of $10 par common stock outstanding. Its total stockhol
Elodia [21]

Answer:

30

Explanation:

The first step is to calculate the preferred stock

= 5,000×100

= 500,000

Therefore the book value per common share can be calculated as follows

= 2,000,000-500,000/50,000

= 1,500,000/50,000

= 30

Hence the book value per common share is 30

7 0
3 years ago
You have recently been hired as the operations manager by a small, but growing distributor for industrial products. After your f
Tamiku [17]

Answer:

An important issue to address because the new ratio suggests the product sales of these strategically important products has slowed significantly.

Explanation:

Since in the question it is mentioned that the inventory turnover ratio would be decreased from 6 to 2 so here this means that the new ratio would be significant for that products who has fall significantly as there is a more inventory as compared with the sales of the company

Also the inventory turnover ratio represents the problem that show the fall in the sales & overstocking

6 0
3 years ago
The faster economic growth​ is, the A. farther the production possibilities curve shifts out. B. steeper the slope of the produc
AleksandrR [38]

Answer:

The correct answer is option A.

Explanation:

A production possibility curve shows the maximum possible combination of two goods that can be produced using all the available resources and state of technology.

An increase in economic growth causes the production possibility curve to shift to the right. The faster the economic growth the more the economy will be able to produce. So the farther the production possibilities curve will shift out.

6 0
3 years ago
Suppose the rate of return on a 10-year T-bond is currently 5.00% and that on a 10-year Treasury Inflation Protected Security (T
olganol [36]

Answer:

1.90%

Explanation:

For TIPS provide rate of real rate,

Inflation rate=return on T bond-return on TIPS-maturity risk premium and it is equal to

= 5%-2.10%-1%=1.90%.

Therefore the expected rate of inflation over the next 10 years is 1.90%

3 0
3 years ago
Read 2 more answers
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