Answer:
historical cost is $1,460,150
Explanation:
Computation of Cost of Land
Cost $1,350,000
Tear down $100,000
Salvage -$8,500
Legal fees $5,250
Title insurance $3,600
pavement <u> $9,800
</u>
Total $1,460,150
Answer:
(a) $15
(b) $35
(c) 4
(d) $80
Explanation:
Given that,
Initial deposit = $20 bill
Required reserve ratio = 25%
(a) Money lend out by bank is as follows:
= Amount of deposit - Reserve requirement
= $20 - ($20 × 0.25)
= $20 - $5
= $15
(b) Money in the economy changed:
= Initial deposit + Amount of money lend out by bank
= $20 + $15
= $35
(c) Money multiplier:
= 1/ Required reserve ratio
= 1/ 0.25
= 4
(d) Money will eventually be created by the banking system:
= Change in deposits × Money multiplier
= $20 × 4
= $80
Answer:
$4,000
Explanation:
The computation of interest expense to be recognized on July 1 is shown below:-
Here the interest is paid in semi-annually,
so, the interest rate per period= 10% ÷ 2 = 5%
and the number of periods = 5 × 2 = 10
Bond premium = Five year bonds - Issued amount
= $92,000 - $88,000
= $4,000
Bond premium amortization per period = Bond premium ÷ Number of periods
= $4,000 ÷ 10
= $400
Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period
= ($88,000 × 5%) - $400
= $4,000
Answer:
d. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period.
Explanation:
- From the statements the cash budget must be prepared in advance to the sales budget is not corrects. As the sales budget is prepared first and it establishes a format for the budget that is critical for the company successes and it thus consists of the different elements that depend in how a business is organized.
d.
Ron will not make his monthly goal of $1,270 and will need $741.68 to supplement his monthly income when he retires.
