MC algo 10-1 Opportunity Costs Shelton Company purchased a parcel of land six years ago for $867,500. At that time, the firm invested $139,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $51,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $919,000. What value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice $1,058,000 $0 $1,006,500 $867,500 $919,000
MC algo 10-1 Opportunity Costs Shelton Company purchased a parcel of land six years ago for $867,500. At that time, the firm invested $139,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $51,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $919,000. What value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice $1,058,000 $0 $1,006,500 $867,500 $919,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 65E
Related questions
Question
MC algo 10-1 Opportunity Costs
Shelton Company purchased a parcel of land six years ago for $867,500. At that time, the firm invested $139,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $51,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $919,000. What value should be included in the initial cost of the warehouse project for the use of this land?
Multiple Choice
-
$1,058,000
-
$0
-
$1,006,500
-
$867,500
-
$919,000
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