Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to
record this transaction in the accounting records?
A) $107,000
B) $115,000
C) $120,000
D) $122,000
B
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One-time costs include all of the following except
a. site preparation b. insurance c. programming and testing d. data conversion
The IASC does not have authority to enforce its standards, but these standards have been adopted in whole or in part by many countries
Indicate whether the statement is true or false
Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost PoolActivity MeasureEstimated ActivityEstimated Overhead Cost?Machine SetupsNumber of setups400$150,000 ?Quality ControlNumber of
inspections1,500$180,000 ?Other OverheadMachine hours30,000$480,000 ?? Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19Model #36Model #58Direct material cost$400 $540 $310 Direct labor cost$810 $600 $220 Number of setups 2 3 1 Number of inspections 1 3 1 Number of machine hours 4 8 10 Under the activity-based costing system, what would be the selling price of one unit of Model #36? A. $2,712 B. $2,536 C. $5,506 D. $4,080
Before issuing a preliminary or interlocutory injunction a court considers the following factor(s):
a. the parties' relative likelihood of success on the merits b. the likelihood that the plaintiff will suffer an irreparable injury if the injunction is not granted c. the balance of the equities d. the public interest e. all of the other choices are factors the court considers