Steel-frame construction relies on the creation of a sound foundation to sustain the weight of the building, because without that all our buildings we have now would suffer from erosion causing the building to shift or even collapse.;
As the aggregate price level in an economy rises, A. interest rate increase.
<h3>What is interest?</h3>
It should be noted that the interest rate simply means the rate that's put on the money that's collected by an entity.
In this case, when there's an increase in the aggregate price level in an economy rises, the interest rate increase as well.
Learn more about interest on:
brainly.com/question/2294792
#SPJ1
Answer:
c. $ 95,000 $ 0
Explanation:
<u>Calculation of cost of land acquired</u>
For the purpose of recording of land acquired in the books of accounts, the accounting values of consideration paid shall be considered as per the generally accepted accounting principles as well as as per International accounting standard (IAS) - 16 'Property, plant and equipment'. Hence the land shall be recorded as per the following amounts:
Consideration paid in cash (A) = $ 5,000
Consideration in kind (land) (B) = $ 90,000 (Refer Note 1)
Total cost of new land (A+B) = $ 95,000
<em>Note 1</em>
Fair value is irrelevant for the purpose of capitalization of asset (IAS-16)
<u>Calculation of Gain/loss on disposal of land</u>
No gain/loss needs to be recorded as the new asset shall be recorded in terms of the book value of old asset (i.e. net impact is already taken into account during the exchange transaction)