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Anna11 [10]
3 years ago
10

Vijay Inc. purchased a three-acre tract of land for a building site for $260,000. On the land was a building with an appraised v

alue of $128,000. The company demolished the old building at a cost of $11,300, but was able to sell scrap from the building for $1,670. The cost of title insurance was $830 and attorney fees for reviewing the contract were $420. Property taxes paid were $3,300, of which $170 covered the period subsequent to the purchase date. The capitalized cost of the land is:
Business
1 answer:
puteri [66]3 years ago
3 0

Answer:

$273,840

Explanation:

The Cost of of an item of Property, Plant and Equipment according to IAS 16 include the purchase price and any directly related costs incurred in bringing the asset in the condition and location for operation as intended by management.

<u>Calculation of the Cost of Land</u>

Purchase Price                                                                                $260,000

Cost after proceeds to demolish old building($11,300 - $1,670)      $9,630

Insurance                                                                                                $830

Legal Fees                                                                                              $420

Property taxes  ( $3,300 - $170)                                                          $3,130

Capitalized Cost                                                                              $273,840

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Natalija [7]

Answer:

D. Price will rise, quantity purchased will fall, and gross revenues will fall.

Explanation:

It will lead to a higher price of the good as the management has to take into consideration the amount to wages to be paid to the workers, thus increasing the price of the goods. This will result to a lower demand at a higher price  because the price increases and competitions will take advantage of the situation and that will also reduce the revenue of the firm.

4 0
2 years ago
You just sold 300 shares of stock at a price of $42.06 a share. You purchased the stock for $39.80 a share and have received tot
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Answer:

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Explanation:

Given that,

Number of shares sold = 300

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Total capital gain on this investment:

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= $12,618 - $11,940

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3 0
3 years ago
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Answer:

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Answer:

the possible income from producing an additional item.

Explanation:

hope this helps if not let me know

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