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3 years ago

The following expenditures relating to plant assets were made by Adam Company during the first 2 months of 2020.

Business

1 answer:

dem82 [27]3 years ago

8 0

Explanation:

a.)

In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.

Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.

the cash equivalent is the same as the fair market value of the assets that were given or received..

b )

the account title that expenditure should be debited

1. 5000 paid for land

2. 200 paid is for factory machine equipment

3. 850 paid for delivery truck is for equipment

4. 17500 paid for parking lot is for land improvement

5. 250 paid for companies name to be printed on truck is equipment

6. 8000 paid for installation is for equipment

7. 900 paid for insurance policy on truck is prepaid insurance

8. 75 paid as license fee is for license insurance

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Find the present value of the following stream of cash flows assuming that the firms opportuiny costs is 9 percent. 1-5 years 10

Yanka [14]

Answer:

∑( Cash flow × PVF) = 79,347

Explanation:

Given:

Opportunity cost = 9%

Cash flow for 1-5 years = 10,000

Cash flow for 6-10 years = 16,000

Now,

Present value factor (PVF) = $\frac{\textup{1}}{\textup{(1 + 0.09)^n}}$

here, n is the year

For year 1 to 5

Year Cash flow PVF Cash flow × PVF

1 10000 0.9174 9174

2 10000 0.8417 8417

3 10000 0.7722 7722

4 10000 0.7084 7084

5 10000 0.6499 6499

for years 6 to 10

Year Cash flow PVF Cash flow × PVF

6 16000 0.5963 9540.8

7 16000 0.547 8752

8 16000 0.5019 8030.4

9 16000 0.4604 7366.4

10 16000 0.4224 6758.4

========================================================

∑( Cash flow × PVF) = 79,347

========================================================

taking the PVF to 5 decimal places will make 79,347 ≈ 79,348

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3 years ago

Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 50,000 shares of $9 par value

Naya [18.7K]

Paid in Capital Common Stock in Excess to par = (35-9)*50,000=1,300,000

Paid in Capital Common Stock in Excess to par is the difference between the par value of the share and the market value or fair value it was sold at, in this case the par value per share was 9 and market value was 35 , there fore we multiplied their difference by 50,000 to get the total difference.

Explanation:

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3 years ago

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3 years ago

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A group of middle school students were given a short course in math. The instructor was curious if a monetary incentive (money)

kap26 [50]

Answer:

Explanation:

Based on the information provided within the question it can be said that in regards to the experiment details the variables are the following:

The Independent Variable would be the $5 in money offered to some of the students. The Dependent Variable would be the test performance of each student. The Experimental group are the students that were offered money . The Control group are the students who were not offered money.

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3 years ago

Comparable sales of duplexes in a market indicate a grm of 146. if the annual income of the subject is $24,000, what is the prop

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$3,504,000

Using GRM (Gross Rental Multiplier) to calculate value, simply multiply the estimated rental income by the GRM:

$24,000*146= $3,504,000

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3 years ago