Answer:
Diversification
Explanation:
The key words here are 'several businesses'. A company engage in many businesses in order to mitigate or reduce its business risk, and also to create and add more value to customers. This offers a far advantage position than a stand alone entities who deal with only one product or service.
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
Answer:
The correct answer is 'Option (b)
Explanation:
Cole co. should compare between actual interest incurred on all the debts and the calculated interest on weighted average accumulated expenditure and lower of these two should be capitalized.
Actual interest incurred =$50,000+20,000 = $70,000
Calculated interest = $40,000
Lower of these two to be capitalized for the building during 2011= $40,000
Answer:
$31,500
Explanation:
On November 1, 2019, Kate leased out a buliding for $4,500 per month.
On the same day( November 1, 2019) she received seven months payment for the building. Which means she received $31,500 (4,500* 7 months).
Accural taxpayers must be able to include all amount they are to receive for payments of services, once they earn it.
Since Kate is an accural taxpayer, and she receive the $31,500 payment on November 1, 2019, she must include the whole $31,500 on her 2019 tax return as a result of this transaction.
Answer:
$3,500
Explanation:
Placing a stop-loss order at $165 means that the last amount that the stock traded, it had a price of $165 per share.
Based on that, it is evident that each stock has lost $35 when compared to the price at which the stop-loss order was placed and the initial cost per share of $200.
Loss per share=$200-$165=$35
The loss incurred on 100 shares of IBM=loss per share*number of shares owned
The loss incurred on 100 shares of IBM=$35*100
The loss incurred on 100 shares of IBM=$3,500
