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Andru [333]
2 years ago
14

Interest may be capitalized: a. Whether or not there is specific borrowing for the construction. b. On self-constructed assets f

rom the date an entity formally adopts a plan to build a discrete project. c. On routinely manufactured goods as well as self-constructed assets. d. Whether or not there are actual interest costs incurred.
Business
1 answer:
storchak [24]2 years ago
8 0

Answer:

The correct option is A

Explanation:

Capitalization is the term or the process in which there is an addition of the interest which is unpaid to the principal amount of the loan. And the principal  or the original amount of the loan increases or rises when the payments got postponed during the deferment periods and then the interest which is unpaid is capitalized.

So, it will be capitalized whether or not there is particular or the specific amount of borrowing for the construction.

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Troy filed a good faith complaint of discriminatory harassment against his supervisor, Cynthia. One day after receiving notice o
Paraphin [41]

Answer:

Of course this is a retaliatory action. Troy filed a complaint for discriminatory harassment against Cinthia and she answers back by discriminating against Troy even more. All she needed to do was stop discriminating against Troy, she wasn't supposed to increase discrimination against him. This is an example of what shouldn't happen.

Explanation:

5 0
2 years ago
On December 1, Miser Corporation exchanged 6,000 shares of its $25 par value common stock held in treasury for a parcel of land
Verizon [17]

Answer:

$282,000

Explanation:

The computation of the capitalized amount of the land is shown below:

= Number of shares exchanged × fair value of per share - scrap selling value

= 6,000 shares × $50 per share - $18,000

= $300,000 - $18,000

= $282,000

Simply we multiplied the exchanged shares with its fair value and then deduct the scrap selling value so that the correct value can come.

All other information which is given is not relevant. Hence, ignored it

4 0
2 years ago
Suppose Luther Industries is considering divesting one of its product lines. The product line is expected to generate free cash
erik [133]

Answer:

$61,127,596

Explanation:

formula for the value of operations =

[Free Cash Flows (1 + growth rate)] / (WACC - growth rate)

where

We have D/E = 2 or D=2*E  (debt-equity ratio)

Tax = T=35%,

Ks=10%,

Kd =7%

Kd*(1-T) = 7%*(1-35%) = 4.55%

WACC = Kd*(1-T)*(D/(D+E)) + Ks*(E/(D+E))

WACC = 4.55%*(2E/3E) + 10%*(E/3E)

WACC = 4.55%*(2/3) + 10%*(1/3)

WACC = 6.37%

Value of Ops = 2000000*(1+3%)/(6.37%-3%)

Value of Ops = $61,127,596

to be profitable it must receive for the product line $61,127,596

6 0
2 years ago
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. Marino planned to drive the truck for 100,000
Dmitriy789 [7]

Answer:

a- $38,000

Explanation:

Units-of-production method of depreciation is a method in which depreciation is charged based on the output given by the asset in a period.

Truck Purchase price = $48,000

Estimated unit for depreciation = $100,000 miles

Salvage value = $8,000

Total Millage in 3 years = 40,000 + 20,000 + 35,000 = 95,000 miles

Accumulated Depreciation = ( Initial cost - Salvage value) Driven Millage / estimated total Millage

Accumulated Depreciation = ( $48,000 - $8,000 ) 95,000 / 100,000 = $38,000

4 0
2 years ago
Brittni is an account executive for a financial services firm that specializes in employee benefits services. She is meeting wit
zalisa [80]

Answer:

New task purchase

Explanation:

New task purchase is the one purchase decision that has not been done previously by the business as they did not have the need for a new product/task. The new purchase is different from re-purchase as a new purchase will require a lot of evaluation from the buyer both for the product they intend to purchase and the vendor that they want to purchase from. New task purchase is usually done by a company when a need is recognized within the organization. This need may come internally from the firm or may have come from externally (e.g. clients).

After the need is recognized the company tries to evaluate several products that can satisfy this need and also looks for consultants/vendors that can provide solutions for the need. During this process a company will look at several vendors and evaluate them for their capabilities to serve the product/service. After the initial qualification check the company asks all the eligible suppliers/vendors to submit their bids (also called the tendering process).

After evaluation of the bids the firm may decide to purchase the product/service from any of the vendor which suits its needs best. Many companies usually go for the lowest price bids when there is no difference in the product of different supplier and the purchase decision is made.

After the purchase decision the companies usually re-evaluate their purchases and then decide about the future purchases of similar product.

5 0
2 years ago
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