Ask Question
9 September, 19:31

lpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $1,200,000. Alpine decided to construct the addition itself at a cost of $1,100,000. What amount should be recorded in the building account?

+4
Answers (1)
  1. 9 September, 20:38
    0
    The amount recorded in the building account will be $1,100,000.

    Explanation:

    Alpine company has asked for bids from various contractor to construct additions in its office building. many contractors replied with a bid offer among which the lowest was $1,200,000. Alpine decided to construct additions itself at a lower cost than the bid received. The amount which is recorded in office building account will be $1,100,000 at which the company has agreed to construct. The accounts of a company should reflect actual expenditures so the amount of $1,100,000 will be actual expenditure of construction which Alpine Company has determined.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “lpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers