Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $2,700,000. According to independent appraisals, the fair values were $1,260,000 (building A ) and $560,000 (building B) for the buildings and $980,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Answers
The initial valuation of Building A is $1,215,000, the initial valuation of Building B is $540,000, and the initial valuation of the land is $945,000.
To determine the initial valuation of the buildings and the land, we need to allocate the lump-sum purchase price based on the fair values of each component.
According to the information given, the fair value of Building A is $1,260,000, the fair value of Building B is $560,000, and the fair value of the land is $980,000.
To find the initial valuation of each component, we can use the concept of relative fair value.
The total fair value of the buildings is $1,260,000 + $560,000 = $1,820,000, and the total fair value of the property is $1,820,000 + $980,000 = $2,800,000.
Next, we calculate the relative fair value ratio for each component. The relative fair value ratio is determined by dividing the fair value of each component by the total fair value of the property.
For Building A: Relative fair value ratio = Fair value of Building A / Total fair value of the property = $1,260,000 / $2,800,000 = 0.45
For Building B: Relative fair value ratio = Fair value of Building B / Total fair value of the property = $560,000 / $2,800,000 = 0.2
For the land: Relative fair value ratio = Fair value of the land / Total fair value of the property = $980,000 / $2,800,000 = 0.35
Finally, we allocate the lump-sum purchase price based on the relative fair value ratio.
The initial valuation of Building A is $2,700,000 x 0.45 = $1,215,000, the initial valuation of Building B is $2,700,000 x 0.2 = $540,000, and the initial valuation of the land is $2,700,000 x 0.35 = $945,000.
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Related Questions
Ralph purchased 4 tires for his van for $539.16. What is the price per tire?
Answers
Answer:
134.79 per tire
Explanation:
divide the total by how many
Problem 5-25 Future value of an annuity Find the future values of the following ordinary annuities:
FV of $400 paid each 6 months for 5 years at a nominal rate of 8% compounded semiannually. Round your answer to the nearest cent. $
FV of $200 paid each 3 months for 5 years at a nominal rate of 8% compounded quarterly. Round your answer to the nearest cent. $
These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? -Select one from below-The nominal deposits into
the annuity in part (b) are greater than the nominal deposits into the annuity in part (a).
The annuity in part (a) is compounded less frequently; therefore, more interest is earned on previously-earned interest.
The annuity in part (a) is compounded more frequently; therefore, more interest is earned on previously-earned interest.
The annuity in part (b) is compounded less frequently; therefore, more interest is earned on previously-earned interest.
The annuity in part (b) is compounded more frequently; therefore, more interest is earned on previously-earned interest.
Answers
An annuity is a series of equal payments that occur at identical intervals between each one. The FV of annuity formula can be used to determine the series' future value.
Are annuities FVs or PVs?In contracts for annuities, the terms "present value" and "future value" are frequently used. An annuity's future value is the total that will be achieved over time, while its present value is the amount that must be invested now to guarantee a desired payment in the future.
What is the annuity problem's future value?Any annuity's future value is equal to the sum of all future values for all annuity payments at the end of the last payment interval. Take, for instance, the scenario in which you will contribute $1,000 to an investment that earns 10% compounded annually for the next three years at the end of each year.
The interest rate, the frequency of compounding interest, the amount of the payment, and the time period all have an impact on annuity FV.
FV=PMT×(1+rn)n×t−1rn,
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To maximize profits, a perfectly competitive firm should produce where marginalA. cost equals total revenue.B. cost exceeds marginal revenue.C. cost equals marginal revenue, and marginal cost is increasing.D. cost equals marginal revenue, and marginal cost is decreasing.
Answers
Option A is correct . cost equals total revenue.
To maximize profits in a perfectly competitive market, a firm should produce the quantity of output where marginal cost equals total revenue.
This is because at this output level, the marginal cost of producing one additional unit of output is equal to the revenue generated from producing that unit of output. If the marginal cost of producing an additional unit of output is greater than the revenue generated from producing that unit, then the firm would be losing money on the additional unit. On the other hand, if the marginal cost of producing an additional unit of output is less than the revenue generated from producing that unit, then the firm would be making a profit on the additional unit. Therefore, in order to maximize profits, the firm should produce where marginal cost equals total revenue.
So A is the correct option.
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What nose ring? Should I use
Answers
a studddddd cause they look the best.
When the business cycle or economic activity is declining, the economy is said to be in....?
A
the trough
B
contraction
C
expansion
D
recovery
Answers
contraction is to decline the answer is B
Imagine that you are working at a clothing or grocery store, and answer the questions below about inventory and merchandising for the store.
Answers
Answer:
B. To help determine how much inventory to keep in stock of each item in the outlet, I would consider two factors. The first one is the certain amount of each item type in the first week - determining the number of each items input in the stock to be the original data to compare. The second is the number of items sold and still on stock. This would help determine invetory to keep in stock.
B. If I was running a store, I would prefer to use the pick up at store buying method. There would be cashier at the register to check the products and bills as well as receive money from the customers. This is the traditional and still always the most common methods. As the fact that people nowadays still like shopping in physical store, this is definitely the most effective method.
C. The inventory control method I would use when operating a store is to adopt modern technology like bar code to control the inventory stock. By using this technology, I would need to consider the bar code for each type and establishing software to automatically input the information about the number of items sold and in stock. With inputting the number of total items at the beginning and giving each item its corresponding bar code, the sales or number of stock would be tracked by the software.
D. An example of two commodities to be displayed together at store is pencil and rubber. Pencil and rubber undoubtedly are complementary products of each other. Complementary products are made to be used together. Each item requires the other for their complete uses. This is also the case of Rubber and Pencil and each item would not be fully used without the presence of the other.
Explanation:
Disadvantages of choosing a job that is extremely popular or in demand
Answers
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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You intend to purchase a 10 year ,10000 face value bond that pays interest of 800 every six months.If your norminal annual required rate of return is 10 percent with semi-annually compounding ,how much should you be willing to pay for this bond ? What's the current yield
Answers
Answer:
Market price = $13,738.49
Explanation:
The yield to maturity of the bond is 8% x 2 = 16%
You require a 10% return, so the present value of the bond should be:
PV of face value = $10,000 / (1 + 5%)²⁰ = $3,768.89
PV of coupon payments = $800 x 12.462 (PVIFA, 5%, 20 periods) = $9,969.60
Market price = $13,738.49
there are 50 federal circuit courts of appeals, one circuit for each state. true false
Answers
False. According to the question the statement is not true
The statement is not true. There are actually 13 federal circuit courts of appeals in the United States, not one for each state. These circuit courts have jurisdiction over specific geographic regions called circuits, which are composed of multiple states. The 13 circuit courts cover different parts of the country, and they handle appeals from the district courts within their respective circuits.
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precision cuts has a target debt-equity ratio of .48. its cost of equity is 16.4 percent, and its pretax cost of debt is 8.2 percent. if the tax rate is 21 percent, what is the company's wacc?
Answers
Precision Cuts' Weighted Average Cost of Capital (WACC) is 13.20%.
To calculate the Weighted Average Cost of Capital (WACC) for Precision Cuts, we need to consider the cost of equity, the pretax cost of debt, and the target debt-equity ratio, taking into account the tax rate.
Given information:
Cost of equity (Ke) = 16.4%
Pretax cost of debt (Kd) = 8.2%
Target debt-equity ratio = 0.48
Tax rate = 21%
First, let's calculate the after-tax cost of debt (Kd * (1 - Tax Rate)):
After-tax cost of debt = 8.2% * (1 - 21%)
After-tax cost of debt = 6.478%
Next, we can calculate the WACC using the formula:
WACC = (Equity / Total Capital) * Cost of Equity + (Debt / Total Capital) * After-tax Cost of Debt
Since Precision Cuts has a target debt-equity ratio, we can assume a total capital of 1 (equivalent to 100%). Therefore, the WACC formula simplifies to:
WACC = (Equity / (Equity + Debt)) * Cost of Equity + (Debt / (Equity + Debt)) * After-tax Cost of Debt
To find the weights of equity and debt, we use the target debt-equity ratio:
Equity weight = 1 / (1 + Target Debt-Equity Ratio)
Debt weight = Target Debt-Equity Ratio / (1 + Target Debt-Equity Ratio)
Substituting the values:
Equity weight = 1 / (1 + 0.48) = 0.6757
Debt weight = 0.48 / (1 + 0.48) = 0.3243
Now we can calculate the WACC:
WACC = 0.6757 * 16.4% + 0.3243 * 6.478%
WACC = 0.11099 + 0.021014
WACC = 0.132004 or 13.20%
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In a freehold estate what describes when the ownership includes all immovable structures attached to the land such as buildings, trees, and underground resources?
Answers
There are different kinds of estate. In a freehold estate immobility describes when the ownership includes all immovable structures attached to the land such as buildings, trees, and underground resources.
Freehold estates is known to be made up of 2 components. They are:
immobility: This is simply the ownership of all immovable structures that is attached to land. An indefinite ending: This is known to stay or exist for a lifetime.Freehold estates are simply known to be a type of estates that has indefinite lifetime and it can exist for a lifetime or forever.
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in a perfectly competitive industry, if tr > tc, then in the long run
Answers
In a perfectly competitive industry, if Total Revenue (TR) is greater than Total Cost (TC), then firms will earn positive economic profits in the short run.
In the long run, however, these profits will attract new firms to enter the industry, since there are no barriers to entry in a perfectly competitive market. As new firms enter the industry, the supply of goods or services will increase, causing the market price to decrease. This decrease in price will continue until economic profits are driven to zero for all firms in the industry, which is the long-run equilibrium condition in a perfectly competitive market.
Therefore, in the long run, if TR > TC, new firms will enter the industry, increasing the supply of goods or services and driving down the price until economic profits are zero for all firms. As a result, firms in the industry will earn only a normal rate of return on their investment in the long run.
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what are the disadvantage of credit card
Answers
Answer: you don’t see your own money.
Explanation:
The visual enhancement of any drawing through color, value, and texture
Answers
Answer:
That would be the composition of a work.
Source:
"The arrangement of elements within a work of art."
https://www.tate.org.uk/art/art-terms/c/composition
he retail outlet has 6,000 shares of stock outstanding and the current market value of the firm is $429,000. the company just announced a 2-for-1 stock split. what will be the market price per share after the split? a) $35.75 b) $40.50 c) $80.50 d) $71.50 e) $50.25
Answers
$40.50 will be the market price per share after the split. Hence, option B is correct.
What is stock outstanding?The stock that a company currently owns, including restricted shares held by insiders and institutional investors as well as share blocks held by institutional investors, is referred to as shares outstanding.
Unsold shares are reported under "Capital Stock" on a company's balance sheet. They are "authorized" because they fall within the Company's corporate charter's allotted share cap. They were sold, and as a result, they were "issued". They are "great" because customers purchased them.
Thus, option B is correct.
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The core competencies of a business are generated by the interaction of:________
Answers
The core competencies of a business are generated by the interaction of resources and capabilities.
What are a business's fundamental competencies?The distinctive goods, services, abilities, and skills that offer a company an edge over rivals are referred to as core competencies. In other words, a company's core capabilities are advantages over rivals that they cannot realistically match or offer.
What does marketing's core competency entail?Core competencies are the assets, goods, abilities, and skills that provide a company an edge over its rivals. A core competency is usually something that is challenging to imitate, such as a distinctive product or a distinctive brand voice.
Core competency analysis: what is it?The process of determining a company's essential strengths and characteristics that set it apart from its rivals, as well as how to leverage these core competencies to create lasting competitive advantage, is known as core competency analysis.
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select the specific type of interview that is usually conducted when an employee leaves the company?
Answers
When an employee leaves a company, an exit interview is usually conducted.
An exit interview is conducted prior to an employee leaving a company in order to gain a sense and understanding of what an organization can improve on in order to retain its top talent. It's an important part of the overall off-boarding process and is usually hosted in some capacity by HR.
An employee may be asked why they are leaving, their personal impression of the company, and any suggestions for improvement during an exit interview. The discussion should ideally be based on a structured questionnaire.
The employee's final few days with the organization are the ideal time for an exit interview. You will have the finest opportunity for a reasonable, introspective, and impartial discussion now that notice has already been given and with a prospective new role approaching.
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1a) in the neo-classical model, the level of employment is determined by the level of aggregate demand.
Answers
In the neo-classical model, the level of employment is not primarily determined by the level of aggregate demand. Instead, the level of employment is primarily determined by the supply side factors, specifically the interaction of labor supply and labor demand in the labor market.
According to the neo-classical model, the level of employment is determined by the equilibrium between the quantity of labor supplied by individuals and the quantity of labor demanded by firms. Labor supply is influenced by factors such as population size, demographics, and individual preferences, while labor demand is influenced by factors such as productivity, technology, and the cost of labor.
In this model, the wage rate plays a crucial role in determining the quantity of labor supplied and demanded. As the wage rate increases, individuals may be incentivized to supply more labor, while firms may demand less labor due to higher labor costs. Conversely, a decrease in the wage rate may result in increased labor demand and reduced labor supply.
Aggregate demand, on the other hand, primarily affects the overall level of economic activity and output in the neo-classical model, rather than directly determining the level of employment. Changes in aggregate demand can lead to fluctuations in output and overall economic growth, but the labor market adjusts based on the underlying supply and demand dynamics.
It's important to note that there are alternative economic models, such as Keynesian economics, where aggregate demand plays a more prominent role in determining the level of employment. However, in the neo-classical model, the level of employment is primarily determined by the interaction of labor supply and labor demand, with aggregate demand influencing the overall economic conditions.
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Is the following example a social group or a task group?
a support group for people who have lost loved ones in car accidents
social
task
Answers
Answer:
social
Explanation:
Garden Variety Flower Shop uses 930 clay pots a month. The pots are purchased at $3.90 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 flower pots.
Answers
Answer:
A.$151
B.38%
Explanation:
A. Calculation for What additional annual cost is the shop incurring by staying with this order size
First step is to calculate EOQ
Using this formula
EOQ = Square root(2*Annual demand*ordering cost/Holding cost per unit per year)
Let plug in the formula
EOQ =Square root (2*12*930*10/.39)
EOQ = 757 pots
Second Step will be to calculate the Annual cost when EOQ is used
Annual cost( EOQ )= (12*930/757)*10 + (757/2)*.39
Annual cost( EOQ )= $295
Third step is to calculate the Annual cost when 2000 pot is ordered
Annual cost ( 2000 pot is ordered) = (12*930/2000)*10 + (2000/2)*.39
Annual cost ( 2000 pot is ordered) = $445.8
Last step is to calculate the Additional annual cost
Additional annual cost = 445.8 - 295.04
Additional annual cost = $150.76
Additional annual cost=$151 (Approximately)
Therefore the Additional annual cost will be $151
B. Calculation for what benefit would using the optimal order quantity yield
About % of the storage space would be needed
= 757/2000
About % of the storage space would be needed
= 37.85% or 38%
Therefore the About % of the storage space would be needed is 38%
please give me ten pros and ten cons for online banking.
Answers
ADVANTAGES OF ONLINE BANKING
•Pay bills online
This might be one of the top advantages of online banking because you don’t have to take time out of your day to go to the bank.
•Transfer money
You may need to do a rapid money transfer to a client or vendor, or you may need to transfer money from one account to another.
•Deposit cheques online
Rather than driving to a bank branch and waiting in line, you may be able to deposit cheques online in minutes.
•Lower your overhead fees
If your business banks online, your banking fees may be lower, as online banks may not have to pay for the cost and upkeep of branches, and those savings may be transferred to you.
•24/7 account access.
Whether you’re on vacation or it’s the middle of the night, you can manage your banking.
•Simpler fund transfers.
It’s easy to move funds between your accounts, such as from checking to savings, using online banking.
•Better access to bank records.
Whether you need banking records for tax purposes or personal records, you can download statements and transaction records to print them at home.
•Improved visibility of account balances and transactions.
Knowing your account balances is always a few clicks away. You can also check to make sure a transaction has cleared and keep an eye out for unauthorized transactions so you can dispute them immediately.
•Ability to sync your accounts with your apps.
Online banking allows you to transfer information from your accounts to Quicken, Microsoft Money, Microsoft Excel, and other applications.
•Use of mobile apps.
Many banks allow you to use your mobile devices for online personal banking.
DISADVANTAGES OF ONLINE BANKING
•Technology disruptions
Online banking relies on a strong internet connection.
•Lack of a personal relationship
A personal relationship with your bank may be able to offer an advantage over online banking.
•Privacy and security concerns
Financial institutions have very good security, but no system is foolproof.
•Limited services
Online banking features a lot of services, but some of them still require business owners to go into banks to “wet sign” documents. This includes loan and credit applications, a large cash withdrawal or large deposits.
•Security and Identity Theft Concerns
In general, online banking sites and mobile apps are designed to be secure and banks are continually putting updated security protocols in place.
•Convenient but Not Always Faster
While it may take very little time to deposit a check via a bank's mobile app, you still need to wait for access to your money.
•A Limited Scope of Services
Although you can do quite a bit with an online bank account, such as make deposits, check balances and pay bills, there are limitations to the kinds of services you can access.
•Potential to Overspend
The ability to check account balances in the spur of the moment could potentially cause some people to overspend the limits of their checking accounts.
•Limitations on Deposits
Daily or monthly mobile deposit limitations may make it difficult for individuals, but especially businesses to make large deposits online.
•Low stimulus to savings
Due to the low interest rate that traditional banks usually pay to their savings clients, there is a low saving stimulus.
Which statement below is something that political machines and the settlement house movement did not have in common? (1 point)
They operated at the neighborhood level.
Their leaders were admired by local citizens.
They provided assistance to immigrant families
Their leaders won international acclaim.
Answers
Answer:
Their leaders won international acclaim.
Explanation:
Suppose that there are 50 identical firms in a perfectly competitive industry. The minimum average total cost for each firm in this industry is $100, which is reached at an output of 150 units. Currently, the market price is $120, and each firm is producing 200 units of output.- In the short run, the quantity supplied by the industry is ___- In the long run, (firms will enter / firms will exit / the number of firms will stay the same) until the market price ( rises above $200 / falls to $150 / remains the same / falls to $100 ) , and each firm in the industry produces ___ units.-Thus, the long-run supply curve is:a. an upward-sloping line starting at $150.b. a horizontal line starting at $100.c. an upward-sloping line starting at $100.d. a horizontal line starting at $150.
Answers
"perfectly competitive industry," will supply 10,000 units in the near future (50 firms x 200 units per firm). Since each firm is making money in the long run ($120 price - $100 ATC = $20 profit per unit x 200 units = $4,000 profit per firm), businesses will eventually enter the market.
A market structure where numerous small businesses compete to sell similar goods at the going rate is known as a completely competitive industry. No company has a monopoly in this sector of the economy, and both buyers and sellers are fully informed about the state of the market. Businesses in an industry with perfect competition are price takers, which means they are powerless to change the market price and must accept it as it is. They therefore lack motivation to charge more or provide higher quality than their rivals. In a market with perfect competition, resources are distributed effectively, and firms ultimately make no economic profits since new businesses constantly enter the market to fight for any profits that are left over.
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Soft skills 2 sentences that will help
Answers
Answer:
Include the terms most closely related to the job in your resume, especially in the description of your work history. Highlight Skills in Your Cover Letter: You can incorporate soft skills into your cover letter. Include one or two of the skills mentioned here, and give specific examples of instances when you demonstrated these traits at work
Explanation:
answer pls due today
Answers
you subtract $555.00 and $494.00, the difference between them at $61.00
Which of the following statements about savings accounts is FALSE? Savings accounts limit the number of withdrawals that can be made each month. Savings accounts don't usually require a minimum balance. ↓hry Savings accounts pay interest on the money you deposit. Savings accounts are best used to store money for longer-term goals.
Answers
The given statement is FALSE regarding savings accounts (because Savings accounts are best used to store money for longer-term goals). A savings account is a type of bank account that allows you to deposit money, keep it safe, and earn interest on it.
Savings accounts offer a low-risk way to save money and can be useful for a variety of reasons.However, the savings accounts aren't the best option for storing money for longer-term goals such as buying a house or funding a college education.
Inflation can eat away at the value of your savings over time, and the interest rate on savings accounts may not keep up with inflation. Therefore, it is better to invest money in assets such as stocks or real estate, which offer the potential for higher returns.
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PLEASE ive been asking for days i need help with this i don't understand it
you can ignore #5-- i just don't understand #6
Answers
Answer:
$47
Explanation:
Because she can afford the 144 bushel plan, in the long run it is cheaper per bushel so you would choose to market that one to her because it is cheaper in the long run for as well as she grows more bushels.
Identify four economic benefits of hosting a rugby world cup
Answers
Answer:
yes ,i think that answer
Select the correct answer.
Shazia writes a novel about the lives of nomads who lived in the 1800s. She later finds out that a big production house has launched a movie based on a theme that Shazias’ book covers, including a few exact details. The production house didn’t check with Shazia for her consent. Which IPR right has the production house violated?
A.
trademark
B.
copyright
C.
patent
D.
trade secret
E.
goodwill
Answers
which microbes is used to extract ethanol from fruit juice and sugar molasses ·
Answers
Answer:
Yeast
Explanation:
A microbe (microorganism) is a microscopic organism which either exist in its single-celled form or as colony of cells. Example of microbes are bacteria, archaea, algae, protozoa.
Yeast is a microbe used in the extraction of ethanol from fruit juices and sugar molasses. Saccharomyces cerevisiae is a specie of yeast which reacts with fruit juices and sugar molasses in the absence of Oxygen to produce ethanol and carbon dioxide.