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Oksana_A [137]
3 years ago
5

Nelson Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that origin

ally cost $159,000. The facility itself cost $1,390,000 to build. As of now, the book value of the land and the facility are $159,000 and $458,000, respectively. The firm owes no debt on either the land or the facility at the present time. The firm received a bid of $1,700,000 for the land and facility last week. The firm's management rejected this bid even though they were told that it is a reasonable offer in today's market. If the firm was to consider using this land and facility in a new project, what cost, if any, should it include in the project analysis
Business
1 answer:
Arlecino [84]3 years ago
4 0

Answer: $1700000

Explanation:

If the firm was to consider using the land and facility in a new project, the cost that should be included I the project analysis should be the cost of land and the building facility that was given in the question. This is so because that is the relevant cost to be included in the project analysis. The relevant cost is $,1700,000 which is the bid received for land and building by the firm.

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Keating Co. is considering disposing of equipment with a cost of $52,000 and accumulated depreciation of $36,400. Keating Co. ca
Nuetrik [128]

Answer:

$12,750

Explanation:

The computation of net differential income is shown below:-

For computing the net differential income first we need to find out the net income if equipment is sold and net income if offer lease is accepted which is given below:-

Net income if equipment is sold = Sales consideration - Commission

= $25,000 - ($25,000 × 7%)

= $25,000 - $1,750

= $23,250

Now,

Net income if offer lease is accepted = Lease amount - Repair, insurance and property tax expenses

= $46,000 - $10,000

= $36,000

So,

Net differential income from the lease alternative = Net income if offer lease is accepted - Net income if equipment is sold

= $36,000 - $23,250

= $12,750

4 0
4 years ago
A buyer has $20 to spend on rice and beans. Rice costs $2 and beans cost $3 per pound. The buyer is buying the combination of 4
Rainbow [258]

Answer: Buy more of both rice and beans

             

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In the given case, the marginal benefit for the customer is positive for both of the goods.  Also if he chooses to but one more unit of anything in place of other than he will not able to use his budget properly.

Thus, from the above we can conclude that the correct option is C.

3 0
3 years ago
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Answer: D. Toby was ultimately found to be disabled under the ADA, and entitled to reasonable accommodation

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The options are

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6 0
4 years ago
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