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My name is Ann [436]
2 years ago
11

Shawnee Hospital installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $15,

000. Which of the following statements is true with respect to these additions?
a. $30,000 should be debited to the Land account.
b. $15,000 should be debited to Land Improvements.
c. $45,000 should be debited to the Land account.
d. $45,000 should be debited to Land Improvements.
Business
1 answer:
Zarrin [17]2 years ago
6 0

Answer: d. $45,000 should be debited to Land Improvements.

Explanation:

Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.

The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:

= 30,000 + 15,000

= $45,000

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Companies A and B each have the same level of total assets, the same tax rate, and the same earnings before interest and taxes (
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Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

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3 years ago
The current risk-free rate of return in the economy is 1.5%. In addition, the market rate of return is currently 6%. Given that
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The company’s systemic risk level (beta coefficient) is 2.44%

Explanation:

According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)

Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)

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Therefore, The company’s systemic risk level (beta coefficient) is 2.44%

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2 years ago
1. The two basic ways to finance a business are equity financing and
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B and C

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3 years ago
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Why might increasing taxes increasing taxes as a fiscal policy be a more difficult policy than the use of monetary policy to slo
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Answer:

The legislative process experiences longer delays than monetary policy.

Explanation:

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3 years ago
Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as:
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Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as: a line item within income from continuing operations.

<h3><u>Explanation:</u></h3>

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