Determine the initial valuation of each of the assets

Assignment Help Accounting Basics
Reference no: EM13999397

Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and machinery to equip the factory:

757_254-B-A-I-A (3266).png

In addition to the above expenditures, Teradene purchased four forklifts from Caterpillar. In payment, Teradene paid $16,000 cash and signed a non interest-bearing note requiring the payment of $70,000 in one year. An interest rate of 7% properly reflects the time value of money for this type of loan.

Required:

Determine the initial valuation of each of the assets Teradene acquired in the above transactions. 

Reference no: EM13999397

Questions Cloud

Prepare the journal entry to record the bond issuance by : Determine the price of the bonds at January 1, 2016. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2016. Prepare the journal entry to record interest on June 30, 2016, using the effective interest method method. Prepar..
Employees pay marginal cost of choosing expensive coverage : Federal Employees Health Benefits Program as the Model for Marketplace Plans Many Americans have little choice about health insurance. For the majority, the choices are to accept the plan offered by their employer, by their state Medicaid agency, or ..
Describe your favorite myth : Discuss a modern personality whose life more or less fits the pattern of the rise and fall of the hero, as described in the chapter. Describe your favorite myth. What kind of myth is it? How does it serve? Why do you enjoy this myth? What does it te..
Do you think james learned his behavior from his father : Do you think James learned his behavior from his father? Explain your reasoning. Could there have been other contributing factors that would have an effect on the problem? Explain.
Determine the initial valuation of each of the assets : Determine the initial valuation of each of the assets Teradene acquired in the above transactions.
Brian is training for a triathlon : Brian is training for a triathlon, a timed race that combines swimming, biking, and running. Which basic principle of individual choice does Brian's plan illustrate that his wife's advice does not?
What is the ratio l2/l1 of the inductance in circuit : Two RLC circuits have identical capacitors, but different inductors. Circuit 1 has a resonance frequency fo while circuit 2 has a resonance at 8 fo. What is the ratio L2/L1 of the inductance in circuit 2 to the inductance in circuit 1?
Government wishes to increase equilibrium income : Given C= 60+0.8(Y-T), I = 70, G=180, T=100, If Government wishes to increase equilibrium income by 100. What change in G would be required? What change in T would have the same effect? Please verity
Health economics and policy : In theory, how is managed care expected to affect patient and providers incentives, and hence, the cost and use of medical care? What is the evidence?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd