Answer:
Part 1
$1,422,940
Part 2
$331,480
Explanation:
cost of the land calculation
Purchase Price $1305000
Cost to tear down building $121000
Sale of Salvages ($8400)
Leagl fees $5340
Total $1,422,940
The cost of the land that should be recorded by Wilson Co. is: $1,422,940
cost of the building calculation
Architect's fees $47000
Insurance $3900
Liability insurance $4200
Excavation cost $15480
city for pavement $9900
Borrowing Costs $251000
Total $331,480
The cost of the building should be recorded by Wilson Co. is $331,480
Answer:
Short-run is a time limit during which at least one input can be fixed and other input quantities can be verified.
The long run is a time period in which all the inputs can be verified in quantities.
Explanation:
- Both the fixed and variable costs occur in the short term.
- There are no fixed costs in the long term.
- The combination of the output of a company results in the desired amount of the goods at the lowest possible cost is sustained by efficient long-term costs.
- The output changes variable costs. For instance, the employee's salaries and raw material costs are variable costs.
- Based on variable costs and the production rate, the short-run costs are increasing or falling. If a company manages its short-term costs well over time, the desired long-term costs and goals will more likely be achieved.
