Describe how one could adjust the dollar amount

Assignment Help Business Management

Reference no: EM1348244

Palomar Paper Products purchased land in 1993 for $15,000 cash. The company has alleged the land since that time. In 2011 Palomar purchased another area of land for $15,000 cash. Presume that prices in general increased by 60% from 1993 to 2011.

a. Supposing that Palomar made only these two land purchases what dollar amount would appear in the land account on Palomar's balance sheet as of December 31, 2011.

b. Palomar used $15,000 cash to make each land purchase. Would $15,000 in 1993 purchase the same amount of goods and services as $15,000 in 2011? If not how much more or less, and why?

c. Describe how one could adjust the dollar amount reported in the land account as of December 31, 2011, if the stable dollar assumption were dropped.

Reference no: EM1348244

Questions Cloud

Describe how one could adjust the dollar amount : Describe how one could adjust the dollar amount reported in the land account as of December 31, 2011, if the steady dollar assumption were dropped.

Forming an entity : What type of business entity should the friends form to build homes - Forming an entity: home building business

Subsequently subtracting taxes : He supposes the cleaning and repair cost on each house to average $3700 with a standard deviation of $1450. When he sells those subsequently subtracting taxes and other closing costs, he expects to gather an average of $39000 per house with a stan..

Sensitivity analysis with profit target : Compute the number of gizmos needed to break even under present price and cost conditions. Compute how many units would have to be sold to meet the profit target for each of suggested options

Describe how one could adjust the dollar amount : Describe how one could adjust the dollar amount reported in the land account as of December 31, 2011, if the stable dollar assumption were dropped.

Determine your annual tax : Assume you earn taxable income of 100,000 every year. You are subject to an MTR of 50 percent. Currently, your ATR is 35%t. Determine your annual tax and the extra tax that you would pay every year.

Have you experienced a team building workshop : What is your opinion - Have you experienced a team building workshop?

The standard deviation of the net profit : When he sells them, after subtracting taxes and other closing costs, he expects to realize an average of $39000 per house, with a standard deviation of $1100. Find the probable value of the net profit and the standard deviation of the net profit

Define segmentation of markets for ads : Define segmentation of markets for these ads. Identify advantages and disadvantage of each market segment for ads. Describe the impact of consumers on the different ads

User Account

All Pages