Tillman Is Building a Warehouse for Use in His Business

question 72

Multiple Choice

Tillman is building a warehouse for use in his business.The construction costs include the following:
$$\begin{array} { l r } \text { Direct labor } & \$ 35,000 \\\text { Direct materials } & 20,000 \\\text { Architect fees } & 5,000 \\\text { Interest on construction loan } & 3,000 \\\text { Depreciation of equipment used in construction } & 1,500 \\\text { Indirect Administrative costs during construction } & 2,000\end{array}$$
What is Tillman's basis in the warehouse?

• A)$60,000
• B)$61,500
• C)$63,500
• D)$64,500
• E)$66,500

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Definitions:

Performance Evaluation System

A structured process used by organizations to assess and review an employee's job performance and productivity.

Instrumentality

In the context of motivation, it refers to the perceived relationship between performance and the attainment of desired outcomes.

Expectancy

The belief or anticipation about the likelihood of achieving a desired result or outcome.

Proximal Goals

Short-term, achievable objectives set as steps towards a larger goal, helping to maintain motivation and focus.