Steel City Company (SCC) paid $120,000 to purchase land that it planned to use as a future building site. A short time later the Company was approached with an opportunity to purchase a better property. The new property cost $125,000. After considering the alternative SCC decided to reject the offer because the Company would be required to sell the original site for $119,000 thereby incurring a $1,000 loss on the disposal of the land ($120,000 - $119,000). Based on this information
a. the $1,000 loss is relevant to the decision.
b. the $119,00 current market value of original site is relevant to the decision.
c. the $125,000 cost of the replacement property is not relevant to the decision.
d. the $5,000 difference between the cost of the two properties ($125,000 - $120,000) is relevant to the decision.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Steel City Company (SCC) paid $120,000 to purchase land that it planned to use as a future building site. A short time later the Company ...” 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
You Might be Interested in
Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $101,000. Over its 4-year useful life, the bus is expected to be driven 186,000 miles.
Answers (1)
Which rater error leads employees to believe that no aspects of their performance need improvement? A. Contrast error B. Halo error C. Horn error D. Similar to me E. Central tendency
Answers (1)
When evaluating a Website, which of the following statements might indicate the site is based on the author's opinion instead of factual information? a. "Research proves" b. "From my experience" c. "Experts recommend" d.
Answers (1)
Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base? A. personality B. usage C. needs D.
Answers (1)
During the year, total liabilities increased $105,000 and stockholders' equity decreased $83,000. What is the amount of total assets at the end of the year?
Answers (1)
New Questions in Business
Which one of the following is the most widely used source of retirement income? IRAs Keogh plans company pension plans Social Security
Answers (1)
Ella is calculating her net worth. she has listed these items: $170 jewelry, $20 borrowed from mom, cd player, $25 in savings account. which is not an asset?
Answers (1)
2 employees are having a regular conflict with each other and often disturb the team balance. How would you handle the situation?
Answers (1)
The data of Graham Brothers Corp. for two years are given below. 2018 2019 Cash and cash equivalents $5,400 $12,400 Total current liabilities 22,000 32,000 Based on the above information, which of the following statements is true? A.
Answers (1)
A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. this situation is known as:
Answers (1)