The Corps of Engineers compiled the following data to determine which one of two flood control dams should be constructed in a flood-prone resi- dential area. Mountain Valley Flood damage, $/year Disbenefits, S/year 220,000 140,000 30,000 10,000 Costs, S/year 300,000 450,000
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In conducting an incremental B/C analysis of this data:
a. the DN alternative is not an option
b. the DN alternative is an option
c. there is not enough information given to know if DN is an option or not
d. DN is an option only if the alternatives are mutually exclusive
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- Determine the following as a result of your audit:16. How much is the cost of Land disclosed in its notes to financial statement as component of property,plant and equipment – net as of December 31, 2022?17. How much is the cost of Land Improvements disclosed in its notes to financial statement ascomponent of property, plant and equipment – net as of December 31, 2022?18. How much is the cost of Building disclosed in its notes to financial statement as component ofproperty, plant and equipment – net as of December 31, 2022?19. How much is the cost of Machineries disclosed in its notes to financial statement as component ofproperty, plant and equipment – net as of December 31, 2022?20. How much is the amount of Depreciation expense reported by Fix You Company in its statement ofcomprehensive income for the period ending December 31, 2022?The City of Houghton bought new municipal sewage equipment in the year 2010. The equipment cost 122,325 dollars and the city spent an additional 19,080 dollars for installation. The sewage equipment was put into service on June 1st, 2010 and the city removed the equipment from service on September 12, 2022. Using the US Straight Line Depreciation Schedule, estimate the total value of depreciation recorded in the accounting books for the years 2010 through 2022 (i.e. calculate the sum of depreciation in each year for years 2010 through 2022). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas; do not round the recovery factors from the depreciation tables)On January 2, Basketville City purchased equipment with a useful life of three years to be used by its capital project fund. Which of the following is the correct treatment for the asset? A.) Capitalize; depreciation is optional B.) Capitalize; depreciation is required C.) Capitalize; depreciation is not permitted. D.) Record the purchase of the equipment as an expenditure
- Columbia Company incurred the following expenditures related to the land and building: Payment for land and old building 1,750,000 Demolition of old building to prepare the land for the construction of a new building 87,500 Payment to tenants for vacating old building 26,250 Building permit for new construction 52,500 Surveying fee before construction of new building 35,000 Parking lots and driveways (part of building plan) 70,000 Cost of grading, leveling and landfill 78,750 Assessment by city for drainage project 8,750 Construction costs of new building 10,500,000 Temporary quarters for…Indicate where the following items would be shown on abalance sheet.(a) A lien that was attached to the land when purchased.(b) Landscaping costs.(c) Attorney’s fees and recording fees related to purchasingland.(d) Variable overhead related to construction of machinery.(e) A parking lot servicing employees in the building.(f) Cost of temporary building for workers during constructionof building.(g) Interest expense on bonds payable incurred duringconstruction of a building.(h) Assessments for sidewalks that are maintained bythe city.(i) The cost of demolishing an old building that was onthe land when purchased.Mawn Company bought land and built a warehouse during 2019. It improperly debited the following related costs to an account titled Land and Buildings: Land purchase $22,000 Demolition of old building 3,000 Legal fees for land acquisition 1,500 Avoidable interest on loan for construction 2,900 Building construction 53,000 Assessment by city for sewer connection—city is responsible for maintenance 1,200 Landscaping (expected to be permanent in nature) 3,500 Equipment purchased for excavation 18,800 Pro rata portion of fixed overhead incurred during construction of building 15,000 Insurance on building during construction 1,000 Profit on construction 12,000 Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn) 3,000 Modifications to building ordered by building inspectors (due to poor planning by Mawn) 7,500 Delinquent property taxes on land paid in 2019 (land was purchased during the year) 2,500…
- Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $14,000 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of this barn.Revenue and Capital Expenditures Shriver Company built an addition to its chemical plant. Indicate whether each of the following expenditures related to the addition is a revenue expenditure or a capital expenditure: a. Shriver's initial application for a building permit was denied by the city as not conforming to environmental standards. Shriver disagreed with the decision and spent $8,000 in attorney's fees to convince the city to reverse its position and issue the permit. Answer b. Due to unanticipated sandy soil conditions, and on the advice of construction engineers, Shriver spent $58,000 to extend the footings for the addition to a greater depth than originally planned. Answer c. Shriver spent $3,000 to send each of the addition's subcontractors a side of beef as a thank-you gift for completing the project on schedule. Answer d. Shriver invited the mayor to a ribbon-cutting ceremony to open the plant addition. It spent $40 to purchase the ribbon and scissors.…Following is a trial balance of the accounts of the Bureau of Bridge Inspection (BOBI), a relatively newunit of the Department of Transportation (DOT), as of October 1, 2022. Bureau of Bridge Inspections Trial Balance October 1, 2022 Budgetary accounts Total actual resources-collected $20,000 Delivered orders-obligations, unpaid $20,000 Totals $20,000 $20,000 Proprietary accounts: Fund balance with Treasury $20,000 Inventory, materials, and supplies 6,000 General property, plant, and equipment 30,000 Disbursements in transit $20,000 Cumulative results of operations 36,000 Totals $56,000 $56,000 BOBI is responsible for overseeing state inspections of bridges constructed with federal funds. Itreports program expenses by object of account. BOBI does not use commitment accounting, but doesobligate budgetary resources when it enters into contracts or sends purchase orders to buy capitalassets and supplies and materials. It also…