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Pepsi [2]
3 years ago
15

Situation I On January 1, 2020, Bramble, Inc. signed a fixed-price contract to have Builder Associates construct a major plant f

acility at a cost of $4,446,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2020, to finance the construction cost, Bramble borrowed $4,446,000 payable in 10 annual installments of $444,600, plus interest at the rate of 10%. During 2020, Bramble made deposit and progress payments totaling $1,667,250 under the contract; the weighted-average amount of accumulated expenditures was $889,200 for the year. The excess borrowed funds were invested in short-term securities, from which Bramble realized investment income of $269,200. What amount should Bramble report as capitalized interest at December 31, 2020
Business
1 answer:
Burka [1]3 years ago
8 0

Answer:

$88,920  

Explanation:

capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920

Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.  

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Artis Sales has two store locations. Store A has fixed costs of $145,000 per month and a variable cost ratio of 60%. Store B has
guajiro [1.7K]

Answer:

A)$362,500.

Explanation:

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3 years ago
If income decreases and, at the same time, a new technology is discovered that lowers the cost of producing the good, which of t
Fiesta28 [93]

Answer:

b. Cannot tell the change in equilibrium quantity. The equilibrium price will decrease

Explanation:

Two things are going on here

1. Income decreases, that will shift demand inwards. People can buy fewer goods at any given price

2. New technology is discovered, that shifts supply outwards. Costs are reduced so producers can produce more at a given price

The resulting effects are that price will decrease but the result in quantity is undetermined. This can be seen with the two examples attached. In both cases, the shifting of the curves from D0->D1 and S0->S1 results in lower prices. However, in one case the equilibrium quantity goes up and in the other goes up.

4 0
3 years ago
What is a tort? A. A breach of contract B. A legally-binding contract between two parties that includes consideration C. An agen
ElenaW [278]
I am positive it is D

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6 0
3 years ago
Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year, the company reports th
RUDIKE [14]

Answer:

The income statement, statement of stockholders' equity, and balance sheet for Longhorn Corporation is given below.

<u><em>The income statement</em></u>

Sales Revenue                   $ 67,700

COGS                                 ($ 53,400)

Delivery expenses              ($ 2,600)

Salary expenses                 ($ 5,500)

Net profit                             $ 6,200

<u><em></em></u>

<u><em>Balance Sheet</em></u>

Asset

Cash                                  $ 1,200

Equipment                        $ 29,000

Building                             $ 40,000

Supplies                             $ 3,400

Total Assets                      $ 73,600

Equity

Common Stock                $ 44,000

Retain earning                  $ 24,400

(18,200 + 6,200)

Liability

Account Payable              $ 4,400

Salaries payable                $ 8,00

Total Liabilities                 $ 73,600

<u><em>Statement of Stockholders</em></u>

Opening common Stock           $ 40,000

Addition                                       $  4,000

Closing common Stock              $  44,000

Retain earning Opening            $ 18,200

Net profit                                     $ 6,200

Retain profit Closing                   $ 24,400

Total Equity                                 $ 68,400

4 0
3 years ago
Momentum Rollerblades has three product lines: D, E, and F. The following information is available:
Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

                                                     D                         E                    F

Sales revenue                            $90,000        $40,000        $30,000

Variable costs                            <u>($40,000)</u>      <u>($10,000)</u>       <u>($10,000)</u>

Contribution margin                   $50,000        $30,000        $20,000

Fixed costs                                 <u>($10,000) </u>       <u>($5,000)</u>       <u>($25,000) </u>

Operating income (loss)             $40,000         $25,000       ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0
3 years ago
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