Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Franks Logistics Ltd is constructing a new warehouse facility in western Sydney near the proposed second airport and adjacent to the M7 freeway. The purchase of the land occurred and warehouse construction commenced on 1 July 2016. It was ready for use on 31 May 2017, and operations commenced on 30 June 2017. Franks incurs a many costs in building the warehouse and it needs to determine those that should be recognised in the cost of the warehouse on initial recognition. These costs include:
Purchase cost of land
$10,000,000
Legal fees on acquisition
$50,000
Stamp duty
$750,000
Auction fees paid by the vendor
$40,000
Demolition of existing structure
$500,000
Bribe paid to local council official for recommending rezoning
$25,000
Cost of CEO salary for time taken to find site
$60,000
Contract payments for the construction of the warehouse (fixed price)
$20,000,000
Contract payments for construction of the warehouse (variations)
$2,000,000
Fines paid for Workcover (OH&S) breaches on the site
$37,500
Interest on $10m loan to purchase the land
$1,200,000
Landscaping of area surrounding warehouse
$90,000
Replanting of trees (landscaping) damaged by street races
$10,000
Purchase of e-tags for trucks
$100,000
Local Government / Council rates for the year
Required - Calculate the cost of the initial recognition of the warehouse. Do not distinguish land and building and ensure to show all working where required.
If the two projects are independent and the company has unlimited fund, is it possible to choose the two projects? What is the payback period
A review of the balance sheet of a retailer, such as Wal-Mart, will disclose that in current assets the majority investment is in inventory. With manufacturers, such as Ford, the inventory is spread between three different categories.
In connection with the grants for the purchase of school buses and bus maintenance, what amount should be reported as grant revenues for the year ending June 30, 2011, when using modified accrual accounting?
Calculate accumulated depreciation over 6 years. Round the answer to two decimals. Genetic Insights Co. purchases an asset for $13,952.
An estimated salvage value of $18000. If the annual expected income is $28000. the denominator in computing the annual rate of return is
Jasper Ltd adopts the revaluation model, Prepare the necessary journal entries for the revaluation of the building on 30 June 2021 ONLY.
On March 6, 2019, the customer returned $1,250 (or one-half) of the merchandise that was purchased back on March 3. Prepare the journal entry
Takaful is often referred to as an Islamic variant of mutual or co-operative insurance. Explain the differences between conventional insurance and mutual
Outline and justify your expectations for the content of the audit program in relation to sample selection and vouching procedures.
Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?
Notes payable $15,000, Kaur capital $45,000, Singh capital $50,000. Schedule of cash payments to know the cash each partner will receive
At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was $100,000. What the inventory turnover ratio for the year
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd