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kifflom [539]
3 years ago
5

Shelton Co. purchased a parcel of land six years ago for $877,500. At that time, the firm invested $149,000 in grading the site

so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $56,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $929,000. What value should be included in the initial cost of the warehouse project for the use of this land?
Business
1 answer:
kupik [55]3 years ago
6 0

Answer:

The company should recognise $929,000 as the cost the land as this the fair value as at the date when management considers to build the warehouse.

Explanation:

Cost at date of purchase of land

The inital cost of the land is $1,026,500 (cost + grading cost); and since it was leased out, it will be accounted for in line with IAS 40 (Investment Property) to earn investment income (i.e. lease income).

Measurement of Investment property

An investment property can be measured at cost or fair value. The question didn't say that the land was depreciated, hence its assumed that it was measured at fair vale.  

Measurement at date of commencement of constructing the warehouse

IAS 40 permits transferring investment property (e.g the land) to owner occupied property (i.e. the warehouse). Hence in determining the value of the land at this date we have measure the value in line with IFRS 13 (Fair Value Measurement).

Since we know the current market value of the asset at this date as $929,000. This would be recognised as the cost of the land.

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Stanford owns and operates two dry cleaning businesses. He travels to Boston to aquire a restaurant. Later in the month, he trav
Olegator [25]

Answer:

$4,522

Explanation:

As the restaurant is not acquired so the amount of $28,000 would be non-deductible

Also if the expenses is incurred so the maximum deduction allowed is in excess of $50,000 is $5,000

Now

= $51,000 - $50,000

= $1,000 reduction

And,  

= $5,000 - $1,000

= $4,000 deduction

Now

= $51,000 - $4,000

= $47,000

Now

= $47,000 ÷ 180 months

= $261 × 2 months

= 522

Now total deduction is

= $4,000 + $522

= $4,522

4 0
2 years ago
What is the purpose of the sherman antitrust act
tamaranim1 [39]
To destory monopolies that were using their power to harm society.
7 0
3 years ago
Read 2 more answers
Intricate Computer Solutions provides services to corporate and individual customers. During the month of​ June, the corporate b
lisabon 2012 [21]

Answer:

Contribution Margin for each corporate customer= $ 67.5

Explanation:

Intricate Computer Solutions

                          <u><em>Corporate Business Segment   Individual Business Segment</em></u>

Revenue.                        $ 60, 000                                        $ 45,000

<u>Variable costs              $ 33, 000                                          $ 25,100​</u>

<u />

<u>Contribution Margin       $ 27,000                                              $ 20,000 </u>

Less

<u>Fixed costs                    $ 7, 500                                              $ 7, 500       </u>

<u>Operating Income         $19,500                                                $12,500</u>

Contribution Margin for each corporate customer=  Contribution Margin/ No Of Customers  =$ 27000/ 400= $ 67.5

3 0
3 years ago
Read 2 more answers
The wall separating Henri from his manager made it hard to hear what his manager was saying. The wall is an example of a(n) ____
aksik [14]

Based on the information given the wall is an example of a(n) physical barrier.

Physical barrier is barrier that block or obstruct the flow of communication thereby making it difficult for the receiver to hear.

Physical barrier can tend to lead to ineffective communication between two or more people due to the disruption of failure in communication that occur as a result of the barrier.

Wall  is an example of physical barrier as they can prevent effective communication thereby by making it hard for the receiver to hear what the sender communicated to him or her.

Inconclusion  the wall is an example of a(n) physical barrier.

Learn more about physical barrier here:brainly.com/question/902393

8 0
2 years ago
Superior Corporation reported taxable income of $1,000,000 in 20X3. Superior paid a dividend of $100,000 to its sole shareholder
Komok [63]

Answer:

$225,000

Explanation:

Federal corporate income tax (21% flat rate)

$1,000,000 x 21% = $210,000

Federal dividend tax (15%).

$100,000 x 15% = $15,000

Dividens are neither expenses nor deductible, so they do not reduce the amount of corporate taxable income. Therefore we must add up the two quantities.

$210,000 + $15,000 = $225,000

7 0
3 years ago
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