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Pepsi [2]
3 years ago
10

A company purchases a remote building site for computer operations. The building will be suitable for operations after some expe

nditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and recarpeted and there will also be some plumbing work done. Which of the following statements is true?
A. The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.
B. The cost of the building will not include the repainting and recarpeting costs.
C. The cost of the building will include the cost of replacing the roof.
D. The wiring is part of the computer costs, not the building cost.
Business
1 answer:
vaieri [72.5K]3 years ago
3 0

Answer:

True Statements are:

B, C, D

Explanation:

All the capital cost incurred for an asset acquisition is added to the cost of capital asset.

The cost of capital asset here will include the following,

Replacement of wiring will not form part of cost of building, as is associated with fittings and computers, so either it will be clubbed in furniture and fittings or computers,

Replacement of roof is a part of building and shall be added to cost of building.

Painting, plumbing etc: will not form part of cost of building, as will be added to revenue expenditure and not the capital expenditure.

Thus with the above clarification of nature of expense, Statement B, C, and D are true.

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NARA [144]

f(x) = 7 + 0.3x

tell me if I am wrong

7 0
3 years ago
Monique Products, a web-based company, maintains no manufacturing facilities. As orders come in, the company contracts with othe
Sonbull [250]

Answer:

The correct answer is: a virtual corporation.

Explanation:

Virtual corporations are becoming more common with the massification of the internet and communications. They are generally companies that are dedicated to the commercialization of products and generate a massive movement in the network that allows them to be in the "voice to voice" of people. They do not have physical facilities, which saves them expenses such as leasing and public services, and the contracted staff is minimal. These companies are based on the strategy of fast and massive shipments through transport companies in order to satisfy the needs of their clients.

8 0
3 years ago
How can we build up strong analytical skill discuss​
yan [13]

Answer:

hope help you

Explanation:

Here are several ways you can improve your analytical skills:

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4 0
2 years ago
Sheila contracted her friend Susan to paint her house for $3,000. Sheila did this as a favor to Susan as Susan was unemployed. B
Ne4ueva [31]

Answer:

Sheila letting Susan keep $1,000 without holding her liable for not completing the job is an example of a WAIVER.

Explanation:

A waiver is a legal intention or demonstration of a party in a contract to voluntarily relinquish their rights or claims in a contract. This is done without holding the other party (especially when they default in meeting the terms of the contract) liable for damages.

The party that voluntarily relinquishes their rights will usually not pursue any legal action against the defaulting party.

Therefore the scenario above is an example of a waiver, since Sheila has decided not to enforce the contract and has also allowed Susan keep part of the money.

6 0
3 years ago
The following lots of Commodity Z were available for sale during the year.
quester [9]

Answer:

The year end closing inventory is $1256

Explanation:

The LIFO or Last In First Out method of inventory valuation follows that the latest or last purchased inventory will be the one that is sold first. Thus, under this method, the inventory that is purchased at start will be the one that will be left at the end and will form up the ending inventory.

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Thus, out of these 24 units, 8 units will be from the beginning inventory and the remaining from the first purchase (24 - 8 = 16).

The cost of ending inventory will be,

8 units at $49 per unit =   $392

16 units at $54 per unit  = $864

The total amount of closing inventory is = 392 + 864 = $1256

5 0
3 years ago
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