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never [62]
3 years ago
9

Sheridan Company purchased land as a factory site for $1350000. Sheridan paid $114000 to tear down two buildings on the land. Sa

lvage was sold for $8100. Legal fees of $5060 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15060. The contractor was paid $4500000. An assessment made by the city for pavement was $9800. Interest costs during construction were $257000. The cost of the land that should be recorded by Sheridan Company is
Business
1 answer:
Zina [86]3 years ago
4 0

Answer: $‭1,482,360‬

Explanation:

The cost of the land will be all the costs that were incurred to get it ready for use.

= Purchase price + cost of tearing down two buildings + legal fees + Title insurance + Assessment Cost  - Salvage

= 1,350,000 + 114,000 + 5,060 + 3,500 + 9,800 - 8,100

= $‭1,482,360‬

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All of the following will cause a decline in a company’s gross profit EXCEPT A : selling products with a lower markup. B : clear
NISA [10]

Answer: Option D

                     

Explanation: In simple words, gross profit refers to the amount of revenue that the company is left with after deduction for the expenses that are incurred to make and sell that specific product.

The low pay to supplier means that the company will have a low cost to produce the product which will result in increase in gross profit.

Hence the correct option is D.

8 0
3 years ago
Joe sells the house he has lived in for 10 years to the Smith family for $300,000. He receives $50,000 more than his original pu
jasenka [17]

Answer:

$15,000

Explanation:

Joe has sold the house he has been living in for 10 years to the Smiths family

He sold the house at $300,000

Joe receives $50,000 more than the original price bargained 10 years ago

He pays the real estate agent a commission of 5%

= 5/100

= 0.05

Therefore the increase in gross domestic product can be calculated as follows

= $300,000×0.05

= $15,000

Hence, the transaction will increase the gross domestic product by $15,000

5 0
3 years ago
What kind of entrepreneurd are risk takers?
Juli2301 [7.4K]
The correct answer is pursue every business idea

Risk takers take risks as their name says. They pursue all ideas and hope that some will succeed big time.
3 0
3 years ago
A company is considering replacing an old piece of machinery, which cost $400,000 and has $175,000 of accumulated depreciation t
tamaranim1 [39]

Answer:

Company A

a. Differential Analysis dated May 29

                                              Alternative 1           Alternative 2

Opportunity cost                       $250,000            $550,000

Variable production costs          580,000                192,000

Total cost                                  $830,000             $742,000

b. Sunk cost in this situation is: $225,000 ($400,000 - $175,000) cost of the old machine.

Explanation:

Company A's relevant cost for the old machine is the opportunity cost that it will lose if it continues with Alternative 1 or continued use of the old machine and the additional cost for the new machine for Alternative 2.  Also relevant is the variable production costs that would be incurred if the old or new machine is used.

Company A's sunk cost is the cost of the old machine minus accumulated depreciation.  Sunk cost is not relevant for decision making under differential analysis.

Company A's differential analysis is a managerial tool that is used to differentiate one decision alternative from another.  In this analysis, only relevant costs are considered.  A relevant cost in this case is cost that its inclusion or elimination makes a difference in the decision outcome.

8 0
3 years ago
Economists generally recognize that rent controls cause shortages in housing, yet rent controls tend to persist. Why does this o
Hunter-Best [27]

Answer:

D) All of the above are correct

Explanation:

Many people indeed do not know that price controls produce shortages, and we do not only refer to the general public, but also many politicians, who are ignorant of economic theory.

Property owners are politically unpopular because they are frequently perceived as being more priviliged and not paying their fair share. Populist politicans can use them as scapegoats to rile up support.

Many people benefit from rent controls, from owners colluding to the government, to real estate cartels, to tenants, or the government itself it it holds public housing.

3 0
3 years ago
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