Answer:
After the increase in demand, the new equilibrium price is $160, where both supply and demand equal 300.
Explanation:
When the income level of customers increases, the demand curve shifts to the right, increasing the quantity demanded at every price level.
If the quantity demanded for a good increases as its customers' income increases, it is called a normal good.
In this case, the previous equilibrium quantity was 200 units and the equilibrium price was $50. Since the demand curve shifted to the right, both the quantity demanded increased from 200 units to 300, and the equilibrium price increased from $50 to $160.
Suppose the government increases spending on public education by $700 million and individual spending on private education drops by $700 million. this is an example of
a. incomplete crowding out.
b. complete crowding out.
c. zero crowding out.
d. a and c
e. none of the above
Answer:
b. complete crowding out
Explanation:
Expansionary Fiscal Policy is increase in government's net public spending. This leads to increase in Aggregate Demand & hence increase in Income.
However, this government investment effect might be nullified by simultaneous decrease in private investment. It is referred to 'Crowding Out' effect. It implies : increased government spending increases income, which increase demand for loanable funds. Such loan funds demand if not accompanied by increase in money supply, leads to increase in interest rates. This finally leads to reduction in private investment.
Complete crowding out effect is when entire government investment spending amount is offset by equal fall in private investment spending. There is no final net increase in total investment, aggregate demand & income. Given case : 'The government increases spending on public education by $700 million and individual spending on private education drops by $700 million' is an example of 'Complete Crowding Out'
Although it brings many benefits to a firm, ___________ also limits a firm’s ability to realize significant experience curve cost economies and location economies. A. standardization B. customization C. assembly line production D. exporting
Answer:
B. Customization
Explanation:
-Standardization refers to developing guidelines that establish how a product is created which allows the company to decrease costs.
-Customization refers to adapting a product to adjust to the request of customers.
-Assembly line production is when the production process is arranged in workstations and the parts are added in each of them until the product is finished.
-Exporting refers to selling products manufactured in one country to another one.
According to this, the answer is that customization also limits a firm’s ability to realize significant experience curve cost economies and location economies because as the company has to adapt the products and the features are not standard, it is not able to optimize the manufacturing process and establish the operation in any place to minimize the costs.
On July 8, Ace, a refrigerator wholesaler, purchased 50 refrigerators. This comprised Ace's entire inventory and was financed under an agreement with Rome Bank that gave Rome a security interest in all refrigerators on Ace's premises, all future acquired refrigerators, and the proceeds of sales. On July 12, Rome filed a financing statement that adequately identified the collateral. On August 15, Ace sold one refrigerator to Cray for personal use and four refrigerators to Zone Co. for its business.Which of the following statements is correct?A. The refrigerators sold to Zone will be subject to Rome's security interest.B. The refrigerator sold to Cray will not be subject to Rome's security interest.C. The security interest does not include the proceeds from the sale of the refrigerators to Zone.D. The security interest may not cover after-acquired property even if the parties agree.
Answer:
OPTION (B) is correct.
Explanation:
Because, already the interest has been improved, then also Cray gets to keep the refrigerator. The consumer in the ordinary course of business buy a good or a product which is free from a security interest even if the customer knows about the agreement which is made during the lending, that is known as security agreement.
Because in security agreement is a agreement which decides that who is lending, have to pay security interest.
A company produces and sells 2,500 sets of silverware each year. Each production run has a fixed cost of $200 and an additional cost of $5 per set of silverware. To store a set for a full year costs $4. What is the optimal number of production runs the company should make each year
In business, determining the optimal number of production runs involves minimizing total costs by considering fixed, variable, and storage costs.
The optimal number of production runs a company should make each year can be determined by finding the point where the total cost is minimized. In this case, we need to calculate the total cost for different numbers of production runs and find the number that results in the lowest total cost.
Total cost = (Fixed cost per run x Number of runs) + (Variable cost per set x Number of sets) + (Storage cost per set x Number of sets)
By plugging in the given values, we can determine the optimal number of production runs that minimizes total cost.
J. M. Keyes put all his money in on tock, and the stock doubled in value in a matter of months. He did this three times in a row with three different stocks. J. M. got his picture on the front page of the Wall Street Journal. However, the paper never mentioned the thousands of investors who made similar bets on other stocks and lost most of their money. This is an example of the _____problem in deciding how efficient the markets are.
a. Magnitude
b. Selection bias
c. Lucky event
d. Small firm
Answer:
c.Lucky event.
Explanation:
This an example of lucky event problem.
Since for every one successful manager, there are many managers who lost, who are not brought into lime light.
Magnitude problem means only managers with high amount of investments will show considerable profits.
Selection bias means only those with portfolios which generate profits are published.
A decrease in the availability of an important major resource such as oil shifts can cause
Answer:
It will bring about a decrease in aggregate supply which is caused by the increase in input prices and it is represented by a shift to the left of the SAS curve because the SAS curve is drawn under the belief that input prices remain constant.
Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $19 per hour. Happy Helpers incurs payroll tax expense of 12% of the direct labor rate and incurs costs for sick-days and vacation days of $3 per hour. What is the standard rate per direct labor hour?
Answer:
$24.28
Explanation:
Direct labor rate = $19 Payroll tax expense = 12% Costs for sick minus days = $3
112% of $ 19 = $21.28
Fringe benefits = $3
Total= 21.28+3 = $24.28
Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock. The stock is widely traded and selling for $31 per share.
At what amount should the building be recorded by Fairchild Company?
a) $60,000 b) $150,000 c) $186,000 d) $210,000
Answer:
$ 186 000
Explanation:
The cost of the building = $210,000
the shares that was exchange for it was 6000 with selling price of $ 31 per share
the amount for the building that should be recorded by Fiarchild Company = 6000 × $ 31 = $ 186 000
A description of the range and relative likelihood of possible values of an uncertain variable is known as a
a. simulation optimization.
b. probability distribution.
c. risk analysis.
d. base-case scenario.
Answer: (B) Probability distribution
Explanation:
The probability distribution is one of the type of statistical based their which provide the different types of possibility of occurrence the different possible results in the given experiment as it is also refers as the expected value.
The main use of probability distribution is that it is helpful in calculating the various types of events and then summarizing the different types of possible result or value of the given random variable.
According to the question, the uncertain variable in the given description is know as the probability distribution process. Therefore, Option (B) is correct answer.
Corporate governance structure a.varies a great deal across countries. b.has become homogenized following the integration of capital markets. c.has become homogenized due to cross-listing of shares of many public corporations. d.none of the options
Answer:
a.varies a great deal across countries.
Explanation:
Corporate governance is a mixture of the rules and laws by which the business operates and is regulated and controlled this term involves the external and the external factors that impact the compactors stakeholders, customers, shareholders, and the management. However the structure differs form nations to nations on the basis for the roles played by the governments and that includes the monitoring the actions, policies, and the decisions of the corporations. Countries like the U.K, Canada, Ireland, United States, and New Zealand are the top five countries in the corporate governance scale with an overall rating of 7.6 to 6.7.Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and testing departments lease it separately and pay $231,000 and $399,000, respectively, as lease charges. If both the departments lease the equipment jointly, the contract will cost only $570,000. If the cost-allocation method ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users, Stuart, Inc. must be using the ________ cost-allocation method.
Answer:
INCREMENTAL cost allocation method
Explanation:
Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.
Answer:
Incremental Cost-allocation method
Explanation:
Incremental cost-allocation method has to do with establishing priorities among users and allocating common costs to the primary party up to the amount of that user's stand-alone costs which is shown in the case explained here.
The firm that allows customers to select from a variety of standard options to create the service or product of their choice is practicing is called
Answer:
Mass customization.
Explanation:
Mass customization is a marketing and manufacturing technique where a firm allows customers to select from a variety of standard options to create the service or product of their choice.
For example, the mass customization of footwear by Nike or Adidas.
Explain how each of the following will affect the net public debt, other things being equal. a. Previously, the government operated with a balanced budget, but recently there has been a sudden increase in federal tax collections. The net public debt ▼ increases remains unchanged decreases . b. The federal government had been operating with a very small annual budget deficit until three successive hurricanes hit the Atlantic Coast, and now government spending has risen substantially. The net public debt ▼ increases remains unchanged decreases . c. The General National Mortgage Association, a federal government agency that purchases certain types of home mortgages, buys U.S. Treasury bonds from another government agency. The net public debt ▼ increases decreases remains unchanged .
Answer:
A. - The net public debt decreases
The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.
B. - The net public debt increases
The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.
C. - The net public debt remains unchanged
There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.
When federal tax collections rise, the net public debt decreases. If unexpected events lead to an increase in government spending such as in the case of hurricanes, the net public debt increases. When one government agency buys U.S. Treasury bonds from another government agency, the net public debt remains unchanged.
Explanation:The impact of specific events on the net public debt can be understood within the context of budgetary decisions and the wider economy:
a. With a sudden increase in federal tax collections, the government is collecting more money which it can use to pay for its expenditures. This leads to a situation where the government would theoretically have a surplus and not need to borrow additional funds, thus, the net public debt decreases.
b. When unexpected events such as natural disasters occur, the government often has to increase spending to provide relief, rebuild infrastructure, and stimulate the economy. The increase in expenditures without corresponding revenue may lead to a deficit, requiring the government to borrow. Therefore, the net public debt increases.
c. When one government agency buys U.S. Treasury bonds from another, it doesn't really change the overall public debt since both entities are part of the government. This kind of intergovernmental transfer does not bring in new net funds or decrease existing obligations. Thus, the net public debt remains unchanged.
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The items discussed in a(n) _____ include reflections on whether project goals were met, whether the project was successful or not, causes of variances on the project, reasoning behind corrective actions chosen, use of different project management tools and techniques, and personal words of wisdom based on team members experiences.a) design documentb) lessons learned reportc) final project reportd) audit report
Final answer:
The description provided refers to a lessons learned report which is used to evaluate a project after its completion, discussing its successes, challenges, and insights for future improvement.
Explanation:
The items you've described should be included in a lessons learned report. A lessons learned report provides an overview after project completion, addressing whether project goals were met, the success of the project, causes of variances, corrective actions taken, the effectiveness of project management tools and techniques, and personal insights based on team members' experiences. The purpose of this document is to reflect on the process and outcomes of the project to improve future project management practices.
The items discussed in a(n) b) lessons learned report include reflections on whether project goals were met, whether the project was successful or not, causes of variances on the project, reasoning behind corrective actions chosen, use of different project management tools and techniques, and personal words of wisdom based on team members experiences.
1- 26. The county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool. This is an example of: a. contingent valuation. b. revealed preference valuation. c. cost-benefit analysis. d. social discounting.
Answer:
The answer is option A) Sending out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool is an example of contingent valuation.
Explanation:
Contingent Valuation is a survey based economic valuation technique. This is a method of estimating the value that a group of people places on a good.
The Contingent Valuation approach asks people to report their willingness to pay to obtain a product, or willingness to accept to give up a product.
Just like the case demonstrated above whereby the county supervisor sends out a survey via U.S. mail asking residents how much they are each willing to pay toward a new community swimming pool.
However, the approach is different in Revealed Preference valuation. Here inference is made from observed behaviors in regular market places.
Answer:
a. contingent valuation.
Explanation:
Contingent valuation is a method of estimating a value that a person places on product or service. In this method people are being asked for the their willingness to pay for a particular product or service and their willingness to accept or reject the product / service.
In this question the Country Supervisor is asking the resident whether they are each willing to pay toward a new community swimming pool.
Is it really necessary for service firms to engage in research and development? In planning for production and operations control?
Answer:
Yes it is very necessary to avoid plunging into a mess of bankruptcy. Every business needs to be planned before venturing into, and if a clear process is not observed then there is a huge danger by the corner.
The fi corporation's dividends per share are expected to grow indefinitely by 5% per year. ( lo 13-3 ) 1. if this year's year-end dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the ddm? page 438 2. if the expected earnings per share are $12, what is the implied value of the roe on future investment opportunities? 3. how much is the market paying per share for growth opportunities (that is, for an roe on future investments that exceeds the market capitalization rate)?
Answer:
1. $160
2. 15%
3. $40
Explanation:
the attached picture shows the full explanation
A client sells a stock short in their portfolio. The client plans to cover the short sale but prior to covering, calls to ask the RR how to achieve long-term status for capital gains purposes on the short sale. How should the RR respond?
Answer:
Explanation:
Since the client sold the stock short he is anticipating a decrease in share price hence he wants to know how to achieve long-term status for capital gains purposes.
What the RR has to do is to communicate to the client that the short sales made is not eligible for long-term capital gains treatment, irrespective of how long the stock was sold short in the account of the client, the capital gains rate on short term will always be short term.
Consider American-style call options on a bond. The options expire in 60 days. The bond is currently at $1.05 per $1 par and makes no cash payments during the life of the option. The risk-free rate is 5%. Assume that the contract is on $1 face value bonds. Calculate the lower boundary of the call, if the strike price of the call is $0.9.
Answer:
The correct answer is $0.158 or $0.16
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the lower boundary of the call by using following formula:
Lower boundary of call = Spot price - (Strike price ÷ (1 + r)^t)
Where, r = 5% for 60 days = 5% × ( 60 ÷ 360) = 0.833%
So, Let 60 days = 1 time period
By putting the value, we get
Lower boundary of call = 1.05 - ( 0.9 ÷ ( 1 + 0.833%)^1)
= 1.05 - 0.892
= $0.158 or $0.16
Assume the clerk had stolen $1,800 cash, and recorded an entry for a nonexistent NSF check to reduce the cash balance so that it would match the bank balance. Select the internal control practice that would have most likely prevented this fraud. Separation of duties. Maintaining a bank signature card. Hiring competent employees. Performance evaluations. Required vacation.
Answer:
Option A. Sepratation of duties is the correct answer.
Explanation:
The reason is that the clerk is the person who is responsible for preparing both the bank reconciliation, entry postings and handling of cash. This their is no check and balance on the clerk, which constituted to fraud motivation. So having segregation of duties, which means one person is solely responsible for posting of entries in the ledger, other handling of cash and the third one preparing the bank reconciliation would prevent the fraud in the future.
Final answer:
To prevent the theft of $1,800 cash by a clerk through fraudulent accounting, the practice of separation of duties is the most effective internal control measure as it segregates different functions among various employees, thus reducing the risk of fraud.
Explanation:
If a clerk has stolen $1,800 cash and recorded a fake entry for an NSF check to match the bank balance, the internal control practice that would likely have prevented this fraud is separation of duties. This internal control principle divides responsibilities among different employees to reduce the risk of error or inappropriate actions. In this scenario, different individuals would be responsible for handling cash, recording transactions, and reconciling bank statements, making it more difficult for a single person to commit fraud. In contrast, while maintaining a bank signature card, hiring competent employees, conducting performance evaluations, and requiring vacations are important, they may not be as effective in this particular situation as proper separation of duties.
To deal with suspicion of theft, the accused employee can request an investigation that includes a review of the transaction recordings, surveillance footage, and potential witness statements. Implementing additional security measures such as security cameras, and conducting random checks or audits, are practices similar to those used to prevent customers from stealing or governments from tax evasion. These measures would help ensure full compliance and discourage fraudulent behavior.
____ refers to systems for providing effective and efficient communication with the customer from the entire organization. Operational customer relationship management (CRM) Collaborative customer relationship management (CRM) Analytical customer relationship management (CRM) Sales force automation Business intelligence
Answer:
Collaborative Customer relationships Management
Explanation:
Collaborative Customer Relationship Management (CRM) is a form of customer relationship management in which all departments present in an organization shares all the or any form of interaction they have with a customer. It provides effective and efficient interaction with customer from the whole organization. It facilitates communication and interaction throughout all the departments present in the organization. In collaborative CRM, all stakeholders are in control of the customer process.
Answer:
Customer Relationship Management
Explanation:
A software company in China has decided to become a multinational enterprise (MNE). The company desires to completely own its subsidiary and requires a fast entry mode. In addition, the company wants to enter into business immediately without requiring to add a new capacity. In this scenario, which modes of entry will be most appropriate for the company?
Answer:
Acquisition
Explanation:
Acquisition mode of entry is a type of foreign market entry mode that offers fast, large and international expansion into a new market. This is done by a firm gaining control of another firm through the purchase of stocks or exchange of stocks. This type of strategy is usually used by multinational companies to acquire greater market power. A disadvantage of this type of entry is the high cost and integration is difficult due to different organization cultures and relationships..
The most appropriate entry modes for the Chinese software company looking to become an MNE and require fast, full ownership entry are through acquisitions or establishing a wholly-owned subsidiary, with the acquisition being the fastest option.
For a software company in China aiming to become a multinational enterprise (MNE) with complete ownership of its subsidiary and a requirement for fast entry, the most appropriate modes of entry are acquisitions or establishing a wholly-owned subsidiary. Considering the need for immediate business operation without adding new capacity, acquisitions offer the fastest entry mode, enabling the company to capitalize on established operations and market presence. This approach aligns with companies that seek a first-mover advantage, where being early in the market may lead to a sustainable competitive advantage. However, it is critical to be cautious, as the perception of a first-mover advantage has led some companies to over-commit resources without achieving the expected returns, particularly in large emerging markets like China.
True or false: the return on human capital accounts for a much larger share of u.s. national income than the return on physical capital.
a. True
b. False in market economies, investment funds are directed by . as a result, market economies tend to be characterized by a innovation and discovery process than centrally planned economies.
Answer:
True
Explanation:
Human capital are returns or value gain on set of skills, experience and knowledge of the people. When the skills and knowledge of the people are harnessed, it affects economic growth positively and also help to developing an economy.
Physical capital are goods which facilitate the process of production. Examples of physical capital are equipments, land, cash etc.
Although both are important in an economy, human capital accounts for a much larger share of the u.s national income than the return on physical capital because of the large investment in education, research and development and technology.
America account for most of the latest technologies in the world due to its investment in research and also home to larger numbers of investors. All these points to human capital development.
Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that were available?
A. neuromarketing
B. panel data
C. biometrics
D. data mining
E. data warehousing
Answer:
D, data mining
Explanation:
Data mining can be defined as the process of gathering data by finding a pattern or anomaly within a large range of data.
Simply put, data mining is the process of obtaining data from a large amount of data through a certain pattern or anomaly.
In the above question, Jeffrey uses the loyalty card use by customers over a 15year period as basis for deciding on whether or not to make a new promotional campaign. The loyalty card use frequency is the pattern that Jeffrey will be using.
Data mining is a useful as information gotten from it can be used for different purposes such as reducing risks, increasing revenue, etc.
Cheers.
Match the statement with the term most directly associated with it.1.choose a termRights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.2.choose a termThe allocation of the cost of an intangible asset to expense in a rational and systematic manner.3.choose a termA right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.4.choose a termCosts incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.5.choose a termThe excess of the cost of a company over the fair value of the net assets required.
Answer:
1. Intangible assets.
2. Amortization.
3. Franchise.
4. Research and Development Costs.
5. Goodwill.
Explanation:
1. Intangible assets: Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.
2. Amortization: The allocation of the cost of an intangible asset to expense in a rational and systematic manner.
3. Franchise: A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.
4. Research and Development Costs: Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.
5. Goodwill: The excess of the cost of a company over the fair value of the net assets required.
Crane Companybudgeted manufacturing costs for 60000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manufacturing costs $12 per ton of steel Craneproduced 40000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?
Answer:
$530,000
Explanation:
Given that
Fixed manufacturing cost = 50000
Variable manufacturing cost = 12 per ton steel
Total number of steal produced = 40000
Recall that
Total manufacturing cost = Total fixed manufacturing cost + total variable manufacturing cost
Total variable manufacturing cost = variable cost per ton × output
= 40000 × 12
= 480,000
Therefore,
Total manufacturing cost = 50000 + 480000
= $ 530,000
Total manufacturing cost = $530,000
Which of the following descriptions best describes "leadership"?
(A) A firm, unyielding position on what should be done to solve a problem
(B) A set of beliefs based upon principle
(C) A positive, "let's do something about it" attitude toward problems
(D) A posture of resistance to those in authority
Answer:
C) A positive, "let's do something about it" attitude toward problems
Explanation:
Leadership is best described as a positive, 'let's do something about it' attitude towards problems, as it involves taking initiative, envisioning solutions, and empowering others to achieve a common goal.
Explanation:The best description for 'leadership' among the provided options is mostly likely (C) A positive, 'let's do something about it' attitude toward problems. Leadership often revolves around taking initiative, envisioning solutions, and motivating others toward achieving a common goal. It's about empowering others, not challenging or oppressing them. Therefore, a 'let's do something about it' attitude reflects the proactive and enabling nature of true leadership.
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________ is a subset of an organization�s extranet designed to automate the business processes that occur before, during, and after sales transactions between the organization (i.e., a single buyer) and its multiple suppliers. Owned or managed by a "downstream" company and automate the business processes involved in purchasing or procuring products from multiple suppliers; they connect a single buyer and multiple suppliers
Answer:
Supplier portals
Explanation:
Supplier portals (or vendor portals) are basically communication tools. They are used to transfer and manage information between a company and its vendors (suppliers). The supplier port can be configured to send and receive documents that your company considers relevant in the supply chain and purchase process.so correct answer is Supplier portals
Dr. Mo T. Vadar, a professor of psychology at a respected university, is planning a study of the factors that affect the motivation of employees. Dr. Vadar is concerned that the results of his experiments may be misleading because employees in an experimental group tend to behave differently when they know they are being studied. This concern shows that Dr. Vadar is aware of the:
A. Hawthorne effect.
B. Taylor effect.
C. potential confusion between Theory X and Theory Y.
D. Heisenberg principle.
Answer:
A. Hawthorne effect.
Explanation:
The Hawthorne effect is an type of reactivity in which individuals modify one aspect of their behavior to monitor their perception. This undermine the integrity of the research, especially the relationship between the variable. Original research on Hawthorne Work for Telephone Devices in Hawthorne and Illinois changes in working hours and break time and work structure were 1st described by Elton Mayo, and the focus on the needs of others as a whole improves productivity. This effect was observed for minute increases in brightness. In these lighting studies, the intensity of light was changed to examine its impact on workers ’productivity.On January 1, 2019, Coopers Industries bought a parcel of land for use in its operations by paying the seller $100,000 in cash and signing a 5-year, 12 percent note payable in the amount of $400,000. In connection with the purchase of the land, Coopers incurred legal fees of $19,000, a real estate agent sales commission of $25,000, surveying fees of $1,000, and an appraisal fee of $5,000. The acquisition cost of the land is:___________
A. $131,000
B. $150,000
C. $531,000
D. $550,000
Answer:
D. $550,000
Explanation:
The computation of the cost of the land is shown below:
= Cash paid + note payable signed + legal fees incurred + real estate agent sales commission + surveying fees + an appraisal fee
= $100,000 + $400,000 + $19,000 + $25,000 + $1,000 + $5,000
= $550,000
For computing the cost of the land we simply added all the items given in the question
The total acquisition cost of the land for Coopers Industries is $550,000, which includes the initial cash payment, the note payable, and all associated legal fees, commission, surveying, and appraisal costs.
The acquisition cost of the land for Coopers Industries includes the cash paid to the seller, the value of the note payable, and all additional fees incurred in purchasing the land. The formula to calculate the acquisition cost is:
Cash paid to the sellerPlus: Value of note payablePlus: Legal feesPlus: Real estate agent's commissionPlus: Surveying feesPlus: Appraisal feeAdding these amounts gives us:
$100,000 (cash) + $400,000 (note payable) + $19,000 (legal fees) + $25,000 (commission) + $1,000 (surveying) + $5,000 (appraisal) = $550,000
Therefore, the correct answer is D. $550,000.