A Company Purchases Land and a Building on the Land

question 183

Multiple Choice

A company purchases land and a building on the land.The land is appraised at $160,000 and the building at $640,000.If the Land account is debited for $208,000,then the total purchase price for the land and building must have been

• A) $800,000.
• B) $832,000.
• C) $1,040,000.
• D) $848,000.

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Definitions:

Mixers

Devices used for blending ingredients together, commonly found in cooking, baking, and cocktail making.

Diseconomies of Scale

A condition in which a firm’s average costs increase as production increases.

Returns to Scale

The change in output as a result of proportionately changing all inputs in the production process, indicating increasing, constant, or decreasing returns.

Marginal Cost

An uplift in the sum total of costs incurred by producing another unit of a product or service.