Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.
Answer:
$1,484,020
Explanation:
Cost of Land :
= Purchase Value + Cost Incurred to Tear Down 2 Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
= $1,350,000 + $124,000 - $8,400 + $5,220 + $3,700 + $9,500
= $1,484,020
Therefore, the cost of the land that should be recorded by Wilson Co. is $1,484,020.
Answer:
5
Explanation:
The formula to compute the interest coverage ratio is shown below:
= (Earning before tax + interest expense) ÷ (interest expense)
where,
Earning before tax equal to
= Net income ÷ (1 - tax rate)
= $120 ÷ (1 - 0.40)
= $200
And interest expense is $50
So, the interest coverage ratio equal to
= ($200 + $50) ÷ ($50)
= 5
Answer: $12,000
Explanation:
Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.
Why?
The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.
Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.