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marissa [1.9K]
3 years ago
14

Jacob owns five acres of land in northern California. On his land Jacob has a house and a toolshed. There are ten large maple tr

ees around the house that were there when Jacob bought the land. Since buying the land, Jacob has planted an apple tree. Jacob's real property includes
a. the house and toolshed only.
b. the house only.
c. the house, toolshed and maple trees only.
d. the house, toolshed, maple tress and apple tree.
Business
2 answers:
SCORPION-xisa [38]3 years ago
7 0

Answer:

The correct answer is D. The house, toolshed, maple tress and apple tree.

Explanation:

Jacob owns all the elements of the property, as it is located within its 5 acres of land in northern California. Both the house, the tool shed, the 10 maples and the apple tree he planted are part of his private property. And everything he builds in that space will belong to him (crops, buildings, etc.).

Varvara68 [4.7K]3 years ago
5 0

Answer:

The correct answer to the following question is option D) it will include the house, tool shed, maple trees and apple tree .

Explanation:

Jacob has purchased 5 acres of land in north California, where on this land he  has a house and a tool shed . Jacob obviously owns both of these and will definitely be included in his property. While besides the house and tool shed, there are 10 maple trees on this 5 acre of land and Jacob himself has planted an apple tree, now in the property of Jacob , both of these trees would be included because he has paid for the land and those trees are on his property , which he has paid for those maple trees .

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Answer:

                       Submarine Company

Income statement under absorption costing

                                                                        $                 $

Sales (1,800 units x $150)                                              270,000

Less: Full cost:

Direct material (2,000 units x $40)             80,000                                                                                                                                                                                                                                              

Direct labour (2,000 units x $50)                100,000

Variable overhead (2,000 units x $10)        20,000

Fixed overhead (2,000 units x $20)            <u>40,000</u>

                                                                       240,000

Less: Closing stock (200 units x $120)        <u>24,000  </u>      <u>216,000</u>

Gross profit                                                                         54,000

Less: Selling and administrative expenses:

Variable selling and administrative                                    36,000

Fixed selling and administrative expenses  <u>15,000</u>          <u>51,000</u>

Net profit                                                                                3<u>,000</u><u>  </u>  

                             Submarine Company      

Income statement using marginal costing

                                                                         $                  $                

Sales (1,800 units x $150)                                              270,000

Less: Variable costs:

Direct material (2,000 units x $40)             80,000                                                                                                                                                                                                                                              

Direct labour (2,000 units x $50)                100,000

Variable overhead (2,000 units x $10)        <u>20,000</u>

                                                                       200,000

Less: Closing stock (200 units x $100)        <u>20,000</u>        

                                                                       180,000

Add: Variable selling and administrative     <u>36,000</u>       <u>216,000</u>

Contribution                                                                       54,000

Less: Fixed cost:

Fixed production cost                                    40,000

Fixed selling and administrative expenses  <u>15,000</u>          <u>55,000</u>

Net loss                                                                               <u> (1,000)   </u>    

                                 Profit reconciliation statement

                                        Closing stock         Net profit/loss

                                                 $                           $

Absorption costing               24,000                 3,000

Less: Marginal costing          <u>20,000</u>                 <u>(1,000)</u>

Difference                             <u>4,000   </u>                  <u> 4,000</u>

The difference of $4,000 in net profit is as a result of $4,000 difference in closing inventory.

                                     

Explanation:

In marginal costing, variable costs are deducted from sales in order to obtain the contribution margin. Net profit is calculated by deducting fixed costs from the contribution margin. Closing stock is valued at marginal cost per unit in marginal costing. Closing stock is the difference between production units and sales units. Marginal cost is the sum total of all variable costs.

In absorption costing, full costs are deducted from sales in order to obtain the gross profit. Net profit is the difference between gross profit and selling and administrative expenses. Closing stock is valued at full cost in absorption costing. Full cost is the aggregate of variable costs per unit and fixed costs per unit.

3 0
2 years ago
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