Martin buber co. purchased land as a factory site for $400,000. the process of tearing down two old buildings on the site and constructing the factory required 6 months. the company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300. legal fees of $1,850 were paid for title investigation and drawing the purchase contract. martin buber paid $2,200 to an engineering firm for a land survey, and $68,000 for drawing the factory plans. the land survey had to be made before definitive plans could be drawn. title insurance on the property cost $1,500, and a liability insurance premium paid during construction was $900. the contractor’s charge for construction was $2,740,000. the company paid the contractor in two installments: $1,200,000 at the end of 3 months and $1,540,000 upon completion. interest costs of $170,000 were incurred to finance the construction. determine the cost of the land and the cost of the building as they should be recorded on the books of martin buber co. assume that the land survey was for the building.

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Ajewelry direct sales company pays its consultants based on recruiting new members. question 1 options: the company is running a pyramid scheme, which is illegal. the company is running a pyramid scheme, which is legal. the company has implemented a legal and ethical plan for growth. the company uses this method of compensation to reduce the fee for the product sample kit.

Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.