1. What must be given up in order to gain something else:

On March 1, 2015, Landon Company acquired real estate on which it planned to construct a small office building. The company paid

Murljashka [212]

Answer:

The amount to be reported as the cost of the land is $101,000

Explanation:

Given information

Paid cash - $90,000

Cost of property $7,600

Salvaged materials - $1,700

Attorney's fee for work concerning the land purchase - $1,100

Real estate broker's fee - $4,000

Architect's fee - $7,800

Put in driveways and a parking lot - $14,000

For computing the amount of the cost of the land, the Architect's fee and Put in driveways and a parking lot is not considered as it is not related to the land expenses. The computation is shown below

= Cash amount + Cost of property - Salvaged materials + Attorney's fee + Real estate broker's fee

= $90,000 + $7,600 - $1,700 + $1,100 + $4,000

= $101,000

Thus, the amount to be reported as the cost of the land is $101,000

4 0

3 years ago

Which of the following is true of investors using options to manage risk? A. Investors can hedge against a price decline by buy

Virty [35]

Answer:

A. Investors can hedge against a price decline by buying a call option.

Explanation: Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Buying a call option entitles the buyer of the option the right to purchase the underlying futures contract at the strike price any time before the contract expires. Most traders buy call options because they believe a commodity market is going to move higher and they want to profit from that move.

A call option is a contract the gives an investor the right, but not the obligation, to buy a certain amount of shares of a security at a specified price at a later time.

3 0

3 years ago

During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liabili

bonufazy [111]

Answer:

(1) accrue salaries expense

Debit [e.] Salaries Expense

Credit [g.] Salaries Payable

--------------------

(2) adjust the Unearned Services Revenue account to recognize earned revenue

Debit [a.] Unearned Services Revenue

Credit [f.] Services Revenue

--------------------

(3) record services revenue for which cash will be received the following period.

Debit [b.] Accounts Receivable

credit [f.] Services Revenue

3 0

2 years ago

Sleekwrap is a company that produces industrial coatings for the steel industry. until recently it relied on wholesalers to dist

sdas [7]

<span>As vital as the Web has been in the consumer market (B2C), it has turned out to be considerably more imperative in the business-to-business (B2B) advertise. E-commerce is the action of working on the Web or online. It alludes to purchasing and offering items and services on the Web through a site. E-commerce stands for electronic commerce.</span>

3 0

3 years ago

If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will __

Oliga [24]

Answer:

(A) lower their prices; not raise their prices

Explanation:

The oligopolistic market and the kinked demand curve show the relationship with the existing prices as the firm rise their prices above the current price the competitors will not follow as they have to maintain strict competition and thus the film will lose the market.

But if a firm tends to lower the prices the other will follow and they will retain the market shares and the format output will increase marginally.

Works on the assumptions that prices on the curve are relatively elastic

7 0

3 years ago