9- An investor is considering buying some land for $100,000 and constructing an office building 32...
9- An investor is considering buying some land for $100,000 and constructing an office building 32 on it. Three different buildings are being analyzed Building Height 2 Stories 5 Stories 10 Stories |Cost of building (excluding cost of land) Resale value of land building after 20-year horizon Annual net rental income $500,000 $900,000 S2,200,000 200,000 300,000 350,000 110,000 215,000 70,000 Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and a 7% MARR, determine which alternative,...
9-32 An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed. Building Height 2 Stories 5 Stories 10 Stories $2,100,000 400,000 Cost of building (excluding $400,000 $800,000 cost of land) Resale value of land + 200,000 300,000 building after 20-year horizon Annual net rental income 70,000 105,000 256,000 *Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and an 8% MARR, determine which alternative,...
A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $550,000, the equipment costs $300,000, and $100,000 additional working capital is required. It is expected that the product will result in sales of $900,000 per year for 12 years, at which time the land can be sold for $350,000, the building for $350,000, and the equipment for $40,000. All of the working capital would be recovered at the ΕΟΥ 12....
A company is considering constructing a plant to manufacture a proposed new product. The land costs $350,000, the building costs $600,000, the equipment costs $250,000, and $150,000 additional working capital is required. It is expected that the product will result in sales of $900,000 per year for 10 years, at which time the land can be sold for $450,000, the building for $400,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10....
Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/15. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2015. Each company's financial statements for the year ended 12/31/15 immediately after the acquisition are as follows: Income Statement (2015) Sales Cost of sales Expenses Net Income Pepper Co. (900,000) 500,000 260,000 (140,000) Salt Co. (500,000) 250,000 202,000 (48,000) 20,000 70,000 80,000 Balance Sheet (as of 12/31/15) Cash...
only need part b worksheet Illustration #3 Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/17. On the acquisition date, the following net assets of Salt had fair values different than book value: Cost FMV Inventory 80,000 75,000 Turnover 6 times per year Land 70,000 100,000 Building and equipment 220,000 210,000 10 year life Accumulated depreciation (60,000) Covenant-not-to-complete 40,000 4 year life Bonds payable 150,000 175,000 10 years to...
MERCHANDISING ACOUNTING Joe Blink opened Blink Corporation. It has issued 20,000 shares of $4 par value common stoc Bli anplies the authorized 900,000 share. The corporation is a merchandising business. Blink appies" periodic inventory system. Also Blink provides a 2 vear warranty with one of its products which was first sold in October. Blink Corporation Trial Balance September 30 Dr. Cash $ 54,000 Inventory Land 14,000 45,000 500,000 Plant Building Accumulated Depreciation-plant 200,000 1 4,000 Equipment 12,000 Accumulated depreciation--equipment Common...
MERCHANDISING ACOUNTING Joe Blink opened Blink Corporation. It has link Corporation. It has issued 20,000 shares of $4 par value common stock. It authorized 900,000 S od 900,000 share. The corporation is a merchandising business. Blink ventory system. Also Blink provides a 2-year warranty with one of its products which was first sold in October. Blink Corporation Trial Balance periodic inventory system September 30 Cr. Cash Dr. $ 54,000 14,000 Inventory Land 45,000 Plant Building 500,000 Accumulated Depreciation-plant Equipment 200,000...
MERCHANDISING ACOUNTING Joe B Joe Blink opened Blink Corporation. It has issued 20.000 shares of $4 par value common stock. Blink anplies the authorized 900,000 share. The corporation is a merchandising business. Blink appies" periodic inventory system. Also Blink provides a 2 vear warranty with one of its produce which was first sold in October. Blink Corporation Trial Balance September 30 Dr. Cash Inventory Land $ 54,000 14,000 45,000 500,000 Plant Building Accumulated Depreciation-plant 200,000 4,000 Equipment 12,000 Accumulated depreciation--equipment...