A company purchased land to be used as the site for the construction of a plant. Timber was cut from the building site so that construction of the plant could begin. The proceeds from the sale of the timber should be
a. classified as other income.
b. deducted from the cost of the land.
c. deducted from the cost of the plant.
d. netted against the costs to clear the land and expensed as incurred.
B
You might also like to view...
John Elton, who is classified as direct labor, earns $1,00 . per week and is entitled to three weeks of vacation and 5 holidays each year. How much should be accrued for his holiday pay each week?
a. $21.00 b. $40.41 c. $20.41 d. $1,000.00
When is an agent liable for a tort committed by the principal?
A) When the tort was committed with the scope of the agency B) When the agent has aided or abetted the principal's tortious conduct C) When the agency is undisclosed D) When the agent ratifies the action E) Both A and D
Dryel is a Procter & Gamble product that allows consumers to dry-clean their clothes in a dryer. Before launching the product, P&G researchers visited consumers' homes and watched as people they sorted laundry, creating piles of darks, whites, delicates, and items that would go to the dry cleaner because the people were unsure how to clean them. This was an example of _____ research.
A. observation B. mall intercept C. visualization D. action-based E. experiment
Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Fixed element per monthVariable element per unitRevenue - $27.80 Direct labor$0 $3.10Direct materials 0 10.20Manufacturing overhead 37,200 1.10Selling and administrative expenses 22,800 0.30Total expenses$60,000 $14.70?Actual results for June: Revenue$178,318Direct labor$18,606Direct materials$60,652Manufacturing overhead$43,896Selling and administrative
expenses$24,688?The net operating income in the planning budget for June would be closest to: A. $30,279 B. $21,220 C. $20,696 D. $30,674