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Citrus2011 [14]
2 years ago
12

Mason Farms purchased a building for $689,000 and made repairs costing $136,000. The annual taxes on the property are $8,200. Th

e building has a current market value of $730,000 and a current book value of $394,000. The building is mortgage-free. If the company decides to use this building for a new project, what value, if any, should be included in the initial cash flow of the project for this building?
Business
1 answer:
ZanzabumX [31]2 years ago
6 0

Answer:

$730,000

Explanation:

In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question

For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized

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Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%
IRINA_888 [86]

Answer:

The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow

Explanation:

The computation of the cash flow from the operating activities for year 2 is shown below:

= Cash revenue in year 2 - interest on notes payable

= $950 - $1,800

= -$850

The negative amount shows an outflow of cash .

The interest on the note payable is computed by

= Borrowed amount × interest rate

= $36,000 × 5%

= $1,800

7 0
2 years ago
A blue-ocean strategy: A). is an offensive strike employed by a market leader that is directed at pilfering customers away from
mixas84 [53]

Answer: <u>The correct answer is D).</u>

<u />

Explanation:  A blue ocean strategy is used to gain a broad and durable competitive advantage by abandoning existing markets and inventing a new market segment in which competitors are minimal and allow the company to meet a new demand.

7 0
2 years ago
Tangshan mining has 100,000 shares outstanding and just declared a 3-for-2 stock split. before the announcement, the firm's shar
Kazeer [188]
I<span>n this problem, the market net worth of the stocks of Tangshan mining is $5,000,000 (100,000 shares x $50.00 per share). The stock split would not affect the price of the stock. This transaction would only affect the number of shares of the company. Since this is a 3-for-2 stock split, this is clearly a split </span>up.<span> Therefore, this transaction would increase the number of shares while reducing its price per share. The shares would become 150,000 shares now ({100,000 shares/2} x 3). To get the current price of the share, you just need to divide $5,000,000 by the new number of shares which </span>is<span> 150,000 shares. You would then get $33.33 per share.</span>
4 0
2 years ago
Babette is a manager at a fast-food outlet. Recently, her employees have been coming in late, and she wants to change their beha
bagirrra123 [75]

Answer:

unfreezing

Explanation:

Based on the scenario being described within the question it can be said that the employees are in the unfreezing part of the change process. This part of the change process focuses on preparing the individual employees to realize that the change is absolutely necessary in order to improve their performance and the companies overall efficiency.

8 0
2 years ago
Silver Corporation has provided the following information concerning its raw materials purchases. The budgeted cost of raw mater
kakasveta [241]

Answer:

$171,619.20

Explanation:

The computation of the budgeted accounts payable balance at the end of November is shown below:

= Budgeted cost of raw materials purchases in November × following month percentage

= $286,032 × 60%

= $171,619.20

As 40% is paid in the month of purchase whereas 60% is paid to the following month. So, we recognized 60%, not 40%

4 0
2 years ago
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