How much is the initial cost of the building

Reference no: EM132817598

Deferred settlement - no cash price equivalent

Problem 1: On January 1, 20x1 ABC Co. acquired a building for ?380,000, including ?20,000 nonrefundable purchase taxes. The purchase agreement provided for payment to be made in full on December 31, 20x1. Legal fees of ?8,000 were incurred in acquiring the building and paid on January 1, 20x1. An appropriate discount rate is 10%. How much is the initial cost of the building?

a. 368,000 b. 388,000 c. 424,634 d. 353,456

Reference no: EM132817598

Questions Cloud

How much is the total of assets classified as property : How much is the total of assets classified as property, plant and equipment? Land and building classified as held for sale 780,000

Discuss the strengths of using abc analysis : Discuss the strengths of using ABC analysis as an inventory control method

What is the utilization of step 1 : Widgets are made in 3 steps. Step 1 has 1 worker and needs 3 minutes per unit. Step 2 has 1 workers and takes 20 minutes.

What is the total revenue that is needed at the new price : The company has decided to increase price by 10% and the sales department wants to understand the revenue target. What is the total revenue

How much is the initial cost of the building : How much is the initial cost of the building? Legal fees of ?8,000 were incurred in acquiring the building and paid on January 1, 20x1. An appropriate discount

Evaluate the structure of international financial markets : Evaluate the structure of international financial markets and institutions and the range of instruments traded therein. Interpret the operation

Explain how an operations manager would manage : The costs involved in the acquisition of raw materials and their transportation to the manufacturing company must be managed; so must production costs and the c

How much is the initial cost of the fixtures : The prevailing rate for the note as of January 1, 20x1 is 12%. How much is the initial cost of the fixtures? REEDY SLENDER Co. purchased fixtures

Services or processes of an organization : Explain reasons as to why an organization should embrace continuous improvement despite increased productivity and the absence of customer complaints.

User Account

All Pages