Based in the historical cost principle, the total cost of
the land would be the summation of all cost, either direct or indirect.
Therefore it would be:
Cost of Land = $90,000 cash + $5,000 commission + $7,000
demolishing
Cost of Land = $102,000
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Your agreement with the school best approximates a tenancy for years.
<h3><u>
What is tenancy?</u></h3>
- A legal arrangement known as tenancy in common (TIC) allows two or more persons to jointly hold a piece of real estate or a plot of land.
- The amount of total property, whether commercial or residential, under the ownership of each independent owner may be equal or different.
- Tenants in common refers to the parties. One of the three types of joint ownership is tenancy in common.
- Joint tenancy and entire tenancy are the other two categories. When a tenant in common passes away, their portion of the property falls to their estate, where a beneficiary of the share of property may be named. A TIC has no right of survivorship.
The dormitory agreement has a starting and ending point making it a tenancy for years.
Know more about tenancy with the help of the given link:
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Answer:
- government contracting
- advocacy
- entrepreneurial development
- access to capital
Explanation:
SBA is a US government agency whose core mandate is to support the growth of small businesses. The Small Business Association(SBA), promotes economic growth by providing useful resources and information to help them start and develop small businesses.
The SBA supports the advancement of small businesses in the following ways.
- Education and training,
- Providing information and links to affordable credit
- Connecting to government contracts
- Offering business advise
Answer:
10%
Explanation:
Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.
10% yearly interest rate = 5% semiannual interest rate
we must determine the PV of the 20 coupons paid and the face value at maturity.
to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80
the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89
the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.
Answer:
The increase in operating profit is $1,829.00.
Explanation:
The rise or fall in the operating income:
= Purchase unit × ( offer price- direct material- direct labor- variable overhead)
The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)
The rise or fall in the operating income: = $1829
Therefore the profit will increase by $1829
Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.
