Ask question

Ask question

All categories

2 years ago

9

Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $8,500,000. The building incl

uded used but functional equipment. According to independent appraisals, the fair values were $4,800,000, $3,600,000, and $3,600,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be: Building Land Equipment a. $ 4,800,000 $ 3,600,000 $ 3,600,000 b. $ 4,800,000 $ 3,600,000 $ 600,000 c. $ 3,400,000 $ 2,550,000 $ 2,550,000 d. None of these answer choices are correct.

1 answer:

Nuetrik [128]2 years ago

5 0

Answer:

C.$3,400,000; $2,550,000; $2,550,000

Explanation:

Calculation to determine what The initial values of the building, land, and equipment would be

First step is to calculate the formula Total fair value using this formula

Total fair value = Building + Land + Equipment

Let plug in the formula

Total fair value = $4,800,000 + $3,600,000 + $3,600,000

Total fair value = $12,000,000

Now let calculate the initial values of the building, land, and equipment

Using this formula for BUILDING

Building= Total cost of acquisition × (Fair value of building ÷ Total fair value)

Let plug in the formula

Building= $8,500,000 × ($4,800,000 ÷ $12,000,000)

Building= $8,500,000 × 0.4

Building= $3,400,000

Using this formula for LAND

Land = Total cost of acquisition × (Fair value of land ÷ Total fair value)

Let plug in the formula

Land= $8,500,000 × ($3,600,000 ÷ $12,000,000)

Land= $8,500,000 × 0.3

Land= $2,550,000

Using this formula for EQUIPMENT

Equipment= Total cost of acquisition × (Fair value of Equipment ÷ Total fair value)

Let plug in the formula

Equipment= $8,500,000 × ($3,600,000 ÷ $12,000,000)

Equipment= $8,500,000 × 0.3

Equipment= $2,550,000

Therefore The initial values of the building, land, and equipment would be:$3,400,000; $2,550,000; $2,550,000

You might be interested in

A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult. Which of the foll

Salsk061 [2.6K]

Answer:

A) Outsourcing

Explanation:

Outsourcing refers to a business practice where a company gets some of the intermediate goods or services it needs from external suppliers (other companies). Usually outsourcing is carried on by companies in order to reduce costs, e.g. customer service calls handled by Indian companies because Indian workers earn a much lower salary than American workers.

3 0

2 years ago

Question 2 of 20

aleksklad [387]

I guess the answer is C. to convince your manager to use a new meeting organization tool

8 0

1 year ago

When the president issues a rule or regulation that reorganizes or otherwise directs the affairs of the executive branch?

oksano4ka [1.4K]

What you described is called an executive order. The president can do this whenever he wants and if it's unconstitutional then the congress and the judiciary system, more specific the Supreme Court, can overthrow this and ban the executive order because it's considered to be unconstitutional or harmful. The president can use this for almost anything.

4 0

2 years ago

Read 2 more answers

Long-term objectives are useful because they Multiple choice question. can be accurately measured, whereas short-term objectives

belka [17]

Answer:

Option B

Explanation:

Option B:

Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.

6 0

2 years ago

. A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processe

prohojiy [21]

Answer:

(a) Linear model

$max\ P = 9x + 7y$

Subject to:

$12x + 4y \le 60$

$4x + 8y \le 40$

$x,y \ge 0$

(b) Standard form:

$max\ P = 9x + 7y$

Subject to:

$12x + 4y + s_1 = 60$

$4x + 8y +s_2= 40$

$x,y \ge 0$

$s_1,s_2 \ge 0$

Explanation:

Given

$\begin{array}{ccc}{} & {Hours/} & {Unit} & {Product} & {Line\ 1} & {Line\ 2} & {A} & {12} & {4} & {B} & {4} & {8} & {Total\ Hours} & {60} &{40}\ \end{array}$

Solving (a): Formulate a linear programming model

From the question, we understand that:

A has a profit of $9 while B has $7

So, the linear model is:

$max\ P = 9x + 7y$

Subject to:

$12x + 4y \le 60$

$4x + 8y \le 40$

$x,y \ge 0$

Where:

$x \to line\ 1$

$y \to line\ 2$

Solving (b): The model in standard form:

To do this, we introduce surplus and slack variable "s"

For $\le$ inequalities, we add surplus (add s)

Otherwise, we remove slack (minus s)

So, the standard form is:

So, the linear model is:

$max\ P = 9x + 7y$

Subject to:

$12x + 4y + s_1 = 60$

$4x + 8y +s_2= 40$

$x,y \ge 0$

$s_1,s_2 \ge 0$

4 0

2 years ago