Answer: A long term investment
Explanation: In simple words, those assets which are purchased by an organisation with the intent of holding them for more than one year are called long term assets.
Mason is holding the land for five years. Hence, we can say that the land will be classified as long term investment.
It could have been considered as property, plant and equipment but the new facility has not been made yet.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
A local magazine is offering a $2,500 grand prize to one lucky winner. The prize will be paid in four annual payments of $625 each, starting one year after the drawing. The interest rate is 9%.
First, we find the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {625*[1.09^4-1]/0.09
FV= 2,858.21
PV= FV/(1+i)^n
PV= 2,858.21/1.09^4= 2,024.83
The Paleoanthropologists would have a greater interest in
the origin of the human ancestors because they focus on studying about the
ancestors of the humans with the distant past and they trace it back one by one
in order to find out an origin.
Multiply 0.13 by 75: $9.75.
Multiply that by 5: $48.75.
Answer:
Record the loss contingency in the December 31, Year 1, balance sheet and also disclose the lawsuit in the footnotes.
Explanation:
Since the loss is both probable and material, then it must be recorded as a liability in the balance sheet. This is a loss contingency, and depending on whether the probability of occurrence is probable, possible or not possible, and the amount can be determined, then it will be recorded in the balance sheet, included in the footnotes or not considered.
Since the loss is probable and it can be quantified, plus the incident occurred during last year, then the loss contingency must be included as a liability. The company should also disclose the lawsuit in the footnotes.
