Salem Company Hired Kirk Construction to Construct an Office Building

question 97

Multiple Choice

Salem Company hired Kirk Construction to construct an office building for ₤8,000,000 on land costing ₤2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2014 and it has a useful life of 40 years. The price of the building included land improvements costing ₤600,000 and personal property costing ₤750,000. The useful lives of the land improvements and the personal property are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What is the net amount reported for the building on Salem Company's December 31, 2014 statement of financial position?

• A) ₤7,665,000
• B) ₤7,573,750
• C) ₤6,483,750
• D) ₤7,800,000

Comprehend the application of different types of resistors in specific electrical and electronic circuits.

Understand the concept of voltage with respect to ground and its implications in circuits.

Calculate total power dissipation in series circuits.

Identify and understand the role of voltage dividers in circuits.

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Definitions:

Novation

The act of replacing an existing contract with a new one, where a different party assumes the rights and obligations of the original party.

Accord

An agreement in contract law where one party agrees to accept something different (often less) than what was initially agreed upon as satisfactory performance.

Satisfaction

The fulfilment of a requirement, obligation, or the to fulfillment of a condition stipulated in a contract.

Deviated Specifications

Instances where the actual specifications of a product or service differ from the initially agreed or standard specifications.