A company needed a new building. It found a suitable location with an existing old building on the land. The company reached an agreement to buy the land and the building for $960,000 cash. The old building was demolished to make way for the needed new building. Following is information regarding the demolition of the old building and construction of the new one: Construction cost of new building $8,900,000Cost for parking lot………………………………………. $260,000Demolition of old building…………………………………. 200,000Proceeds from sale of salvaged materials from old building 70,000Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.
What will be an ideal response?
| Land ($960,000 + $200,000 - $70,000) | 1,090,000 |
| Building | 8,900,000 |
Cash………………………………………………… 10,250,000
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ElectraSync Inc., a large consumer electronics company, has divided each product in its portfolio into a separate strategic business unit (SBU). The desktop SBU has been experiencing drastic decline in its cash flow, and its market share has also reduced to an insignificant 10 percent. This has been attributed to the low growth in the desktop market after the arrival of tablet computers and laptops. In the context of the Boston Consulting Group (BCG) growth-share matrix, the desktop SBU will be categorized under
A. dogs. B. question marks. C. cash cows. D. stars.
The amplification of order sizes as one moves further up a supply chain is referred to as the _______.
a. bullwhip effect b. corkscrew effect c. chainsaw effect d. vibration effect
When the owner withdraws cash for personal use,
A. owner's equity decreases and revenue decreases. B. assets decrease and owner's equity decreases. C. assets decrease and owner's equity increases. D. assets decrease and expenses increase.
Of the following taxes, which one(s) is/are examples of statutory deductions that pertain to employers?
What will be an ideal response?