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Marta_Voda [28]
3 years ago
10

Cala manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. the nego

tiated purchase price is $264,000 for the lot plus $159,000 for the old building. the company pays $32,000 to tear down the old building and $47,304 to fill and level the lot. it also pays a total of $1,309,874 in construction costs—this amount consists of $1,232,100 for the new building and $77,774 for lighting and paving a parking area next to the building.
Business
1 answer:
Ivanshal [37]3 years ago
5 0
Cost of Land:Purchase price for land: 264,000Purchase price for old building : 159,000Demolition cost for old building: 32,000Cost to fill and level lot: 47,304Total cost of Land:  502,304


Cost of new building and Land improvementCost of new building: 1,232,100Cost of land improvements: 77,774Total construction cost:  1,309,874

Land (Debit 502,304)Land improvement (Debit 77,774)Building (Debit 1,232,100)Cash (Credit 1,812,178)
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High Step Shoes had annual revenues of $202,000, expenses of $112,200, and dividends of $24,800 during the current year. The ret
wel

Answer and Explanation:

The  journal entry required to close the income summary account is given below:

Income summary Dr ($202,000 - $112,200) $89,800

  To retained earnings $89,800

(Being the closing of the income summary is recorded)

The above entry should be passed for closing out the income summary account

The same is to be considered

5 0
2 years ago
When choosing between mutually exclusive projects, what is the best method to use?
KIM [24]

Answer:

Option C. The highest NPV is always the best option.

Explanation:

The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.

The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.

7 0
3 years ago
Consider a mutual fund with $260 million in assets at the start of the year and 10 million shares outstanding. The fund invests
Ugo [173]

Answer: $26; $28.057

Explanation:

Total value = $260 million in assets

Shares outstanding = 10 million

Dividends = $2.5 million

Fund value at the start of the year = \frac{Total\ value}{No.\ of\ shares\ outstanding}

                                                         = \frac{260}{10}

                                                         = $26

Fund value at the end of the year:

Dividend per share = \frac{Dividends}{No\ of\ shares}

                                = \frac{2.5}{10}              

                                = $0.25

Price gain at 9% with deduction of 1% of 12b-1

Fund value at the end of the year = $26 × 1.09 × (1 - 0.01)

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4 0
3 years ago
Laura's boss, Erik, constantly uses sexually explicit language while communicating with his female subordinates. Though many fem
Fittoniya [83]

Answer:

I shouldn't believe or think this will be viewed as offensive conduct because he doesn't threaten any lady throughout particular. A further explanation is given below.

Explanation:

  • Complaining about discrimination based on private orientation as either a misconduct action throughout Title VII of the 1964 civil rights legislation including 29 C.F.R. including its Federal EEO Action Process Portion 1614.
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3 0
2 years ago
All the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT: Group
miv72 [106K]

Answer:

Policy loans are permitted on an interest-free basis.

Explanation:

The universal life insurance policy refers to a policy in which there is a component of an investment saving also it involves less premium that the person has to pay a low premium amount for continuing the policy. It could benefit the beneficiary after the death of the insured person

So according to the given situation ,for option B there is no flexibility available as no policy loans could be permitted without an interest

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