Determining opportunity cost of purchase of land

Assignment Help Accounting Basics
Reference no: EM13147109

A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:

Reference no: EM13147109

Questions Cloud

Present value of a terminal investment : Calculate the Present Value of a terminal investment that has the following features. show all your work
Significance of transaction to analyst : Explain the significance of this transaction to an analyst. Explain the consequences of poor quality reporting. What has the U.S. government done to improve the quality of reporting after recent financial scandals, such as Enron?
Consolidated financial statements workpapers : Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.
Dancing in a white disco jacket to music performed : Playing a young working class Brooklyn man, whose life was centered around spending Saturday night at the disco. A memorable scene in the movie has Travolta dancing in a white disco jacket to music performed by the BeeGees.
Determining opportunity cost of purchase of land : A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:
Explain what percent of the limestone by mass : Celsius the initial sample contained 0.0718 grams of calcium. What percent of the limestone by mass is CaCO3?
Patent amortization problem : P Corporation acquired 80% of S Corporation on January 1, 2011 for $240,000 cash when S's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by P and the underlying eq..
Research specific company in one of business sectors : Research a specific company in one of the business sectors that interests you and describe how you imagine it might be to work there. Use 100 to 150 words for your description.
Process of closing income summary account : A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Contrasting the different types of accounting

Write a 700- to 1,050-word paper in APA format comparing and contrasting the different types of accounting, namely accrual, cash flow, and fund accounting. Be sure to consider the following:

  Find the cumulative effect of accounting change

The change will result in a $1,800,000 increase in the start inventory at January 1, 2013. Consider a 40% income tax rate. Find the cumulative effect of this accounting change on beginning retained earnings

  Determining revised annual depreciation

On this date the company concludes that the equipment has a remaining useful life of two years with the same salvage value. Compute the revised annual depreciation.

  How many exemptions may lyn and robert claim

Lyn, age 65, and Robert, age 66, are married and support Lyn's father (no taxable income) and Robert's mother, who has $2,200 of gross income. If they file a joint return for 2011, how many exemptions may Lyn and Robert claim?

  Determine what the ethical considerations in situation

Search the Internet for at least four (4) stories about major charitable contributions by individuals, including Bill Gates, Warren Buffett, Steve Jobs, and at least one (1) other individual. Be mindful that you are not researching foundations, su..

  Us gaap or ifrs system

Which is better for preventing or detecting fraud a rules based system like US GAAP or a principles based system like IFRS? Please provide the reasons for your opinion.

  Accounting report by using the peachtree accounting software

Prepare accounting report by Using the Peachtree Accounting Software

  Journal entries for partnership profits

Prepare the journal entry(s) and defend your reasoning process for the admission of Flint to the partnership assuming Flint invested $400,000 for the ownership interest. Flint paid the money directly to Chang and to Danos for 50% of each of their ..

  Bledsoe large cap stock fund

Using the returns for the Bledsoe Large-Cap Stock Fund and the Bledsoe Bond Fund, graph the opportunity set if feasible portfolios.

  Stocks current yield-capital gains yield and stock return

Suppose the price of a stock is $50 at the beginning of the year and $53 at the end of the year and it pays a $2 dividend during the year. Calculate the stocks current yield, capital gains yield and the stock's return.

  Journal entry to record the reissuance

Treasury stock that had been purchased for $5,400 last month was reissued this month for $7,500. The journal entry to record the reissuance would include a credit to

  United states exchanges

The SEC currently requires foreign companies that list shares on U.S. exchanges to provide:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd