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boyakko [2]
2 years ago
11

Geo Co. purchased a building for $400,000. In addition, Geo paid $35,000 for taxes and lawyer fees. Geo also paid $60,000 to mod

ify the building, changing the layout specifically for Geo's needs. Geo should record the building at $
Business
1 answer:
ycow [4]2 years ago
4 0

Answer: $495,000 User “Parrain” is the person who solved this question

Explanation: ALL costs that went into the DIRECT acquisition of the asset as well as COSTS TO SET IT UP for use by the firm should be accounted for in the amount recorded. In this case that would mean that the cost price, the closing fees and the modification fees all need to be accounted in the final amount. That would be $400,000 + $35,000 + $60,000= $495,000$495,000 should be recorded as the building's cost.

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Slinky Company purchased merchandise on June 10, 2021, at a price of $26,000, subject to credit terms of 4/10, n/30. Slinky uses
vampirchik [111]

Answer:

The answer is given below;

Explanation:

June 10.

Inventory    (26,000*.96)                Dr.$24,960

Accounts Payable                                                   Cr.$24,960

2.If payment is made on June 18,2021

Accounts Payable           Dr.$24,960

 Bank                                Cr.$24,960

3. If payment is made on July 8,2021

    Inventory  (26,000-24,960) Dr.$1,040

   Accounts Payable                  Cr.$1,040

    Accounts Payable (1,040+24,960) Dr.$26,000

    Bank                                                 Cr.$26,000

As the credit period of 10 days  for discount was not availed, therefore full amount payment will be made.

4 0
3 years ago
A company’s investment bankers say that a proposed new issue of 7.5 percent cumulative preferred stock with a par value of $10 a
Nookie1986 [14]

Answer:

The Answer is as follows;

Explanation:

Dividend on preferred stocks=$10*7.5%=$.075

Transaction Costs=$1

Total financing Cost=$1.75

Which is 17.5% (1.75/10)

The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.

8 0
3 years ago
The maximum outstanding balance you should have on a credit card with a $4,000.00 limit is _____.
Ira Lisetskai [31]
<span>The amount you plan on paying in full as a balance when the bill comes inn.
So,

</span><span>The maximum outstanding balance you should have on a credit card with a $4,000.00 limit is $ 4000.</span>
6 0
2 years ago
Read 2 more answers
On October 1, 2022, Ivanhoe Company places a new asset into service. The cost of the asset is $87500 with an estimated 5-year li
Dimas [21]

Answer:

$3150

Explanation:

Given:

Cost of the asset purchased = $87500 (on 1st October. 2022)

Salvage value at the end of its useful life = $24500

Useful life estimated = 5 years

Question asked:

What is the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation?

Solution:

<u>As we know:</u>

Straight-Line\ Depreciation\ Expense=\frac{Cost\ - Salvage\ Value}{Useful\ Life\ of\ the\ Asset}

                                                               =\frac{87500-24500}{5} =\frac{63000}{5} =12600

Depreciation expenses per year = $12600

But we have to find depreciation expenses for 2022 for:-

From 1st October, 2022 to 31st December, 2022 = 3 months.

<em><u>Straight-Line Depreciation Expense for Partial Year = </u></em>

<em><u /></em>D\times\frac{N}{12} \\\\ D=Depreciation\ expense\ for\ a\ complete\ year.\\N= Number\ of\ months\ during\ which\ the\ fixed\ asset\ was\ available\ for\ use

Depreciation Expense for 3 months = 12600\times\frac{3}{12} =\frac{37800}{12} =3150

Therefore, the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation is $3150.

                                                             

5 0
3 years ago
After evaluating identified segments, decisions have to be made whether to pursue a particular opportunity or not. Assuming the
photoshop1234 [79]

Answer:

Target marketing strategies is made in order to separate customers into several groups based on similar characteristics. After the separation, we will create a marketing strategy that can appeal to a specific group.

Typically, the target marketing strategies need to be done in 3 steps:

<u>1. Segmenting</u>

During this step, we need to find a characteristics that we want to use to divide the customers. (such as age, gender,  health status, etc)

<u>2. Targeting</u>

During this step , we need to determine which characteristics we want to use as a target depending on the resources that we have on our disposal.

<u>3 Positioning</u>

During this step, we need to make various effort to make our product become appealing to that specific group. We can do this by changing the design, materials, or the way we advertise the product.

4 0
3 years ago
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