julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $127,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 10 years plus a lump-sum payment of $53,000 at the end of the 10-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept
Answers
Answer:
a. i. Present value of first option = $127,000
ii. Present value of second option:
= Present value of $14,000 annuity + Present value of $53,000 lump sum.
Present value of annuity:
= Annuity * Present value interest factor of annuity, 11%, 10 years
= 14,000 * 5.8892
= $82,448.80
Present value of lump sum:
= 53,000 / ( 1 + 11%)¹⁰
= $18,665.77
Present value of second option = 82,448.80 + 18,665.77
= $101,114.57
b. She should take the first option. It has a larger present value.
Related Questions
As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________
Answers
Answer: c. competitor imitation
Explanation:
When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.
This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.
_plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, brand, or a product line. It covers between one and five years
Answers
Mustang Corporation reports the following for the month of April:Finished goods inventory, April 1$32,600 Finished goods inventory, April 30 26,600 Total cost of goods manufactured 123,800The cost of goods sold for April is:a. $61,900.b. $124,500.c. $112,900.d. $173,700.e. $150,000
Answers
Answer:
COGS= $129,800
Explanation:
Giving the following information:
Finished goods inventory, April 1$32,600
Finished goods inventory, April 30 26,600
Total cost of goods manufactured 123,800
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 32,600 + 123,800 - 26,600
COGS= $129,800
The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.
(a) Money borrowed to pay building contractor (signed a note) $(289,100 )
(b) Payment for construction from note proceeds 289,100
(c) Cost of land fill and clearing 11,860
(d) Delinquent real estate taxes on property assumed by purchaser 7,990
(e) Premium on 6-month insurance policy during construction 9,480
(f) Refund of 1-month insurance premium because construction completed early (1,580 )
(g) Architect’s fee on building 26,400
(h) Cost of real estate purchased as a plant site (land $202,900 and building $56,600) 259,500
(i) Commission fee paid to real estate agency 9,690
(j) Installation of fences around property 4,140
(k) Cost of razing and removing building 10,530
(l) Proceeds from salvage of demolished building (4,690 )
(m) Interest paid during construction on money borrowed for construction 12,230
(n) Cost of parking lots and driveways 17,750
(o) Cost of trees and shrubbery planted (permanent in nature) 13,350
(p) Excavation costs for new building 3,290
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.)
Item Land Land
Improvements Building Other Accounts
(a) $
$
$
$
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
Answers
Answer:
a)Other Accounts – $(289,100 )Notes Payable
b)Buildings – $289,100
c)Land – $11,860
d)Land – $7,990
e)Buildings – $9,480
f)Buildings – ($1,580)
g)Building – $26,400
h)Land – 259,500
i)Land – $9,690
j)Land Improvement – $4,140
k)Land – $10,530
l)Land – ($4,690 )
m)Buildings –$ 12,230
n)Land Improvement – $17,750
o)Land – $13,350
p)Buildings – $3,290
Explanation:
To Identify each item by letter and list the items in columnar form,
a)Other Accounts – $(289,100 )Notes Payable
b)Buildings – $289,100
c)Land – $11,860
d)Land – $7,990
e)Buildings – $9,480
f)Buildings – ($1,580 )
g)Building – $26,400
h)Land – 259,500
i)Land – $9,690
j)Land Improvement – $4,140
k)Land – $10,530
l)Land – ($4,690 )
m)Buildings –$ 12,230
n)Land Improvement – $17,750
o)Land – $13,350
p)Buildings – $3,290
Retained earnings, December 31, 2012 $311,900 Â
Cost of equipment purchased during 2013 30,000 Â
Net loss for the year ended December 31, 2013 4,550 Â
Dividends declared and paid in 2013 15,200 Â
Decrease in cash balance from January 1, 2013, to December 31, 2013 12,800 Â
Decrease in long-term debt in 2013 15,900 Â
Required:
From the above data, calculate the retained earnings balance as of December 31, 2013. (Negative amounts should be indicated by a minus sign.)
Answers
Answer:
Retained earnings balance as of December 31, 2013
Particulars Amount ($)
Retained Earnings Dec 31, 2012 311,900
Less: Net Loss for the Year 4,550
Less: Dividend declared and paid in 2013 15,200
Retained Earnings Dec 31, 2013 $292,150
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $2.35, what is the current share price
Answers
Answer:
53.98
Explanation:
current share price is the present value of dividends
Year 1 = 2.35 x 1.22 = 2.867
Year 2 = 2.867 x 1.22 = 3.50
Year 3 = 3.50 x 1.22 = 4.27
+ 4.27 x 1.05 / (0.12 - 0.05) = 64
I - 12%
PV = 53.98
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Liz received an email from a long-term client informing her that they were planning to work with another advertising agency. Which response is the best application of the some post-event strategies of resilience?
Answers
Answer:
Review all email to see if the client was somehow offended. Then analyze listening skills to ensure the client's needs were met. Discuss with a mentor. If the relationship can't be salvaged, learn from the experience and move on.
Explanation:
Due to the fact that Liz received a mail from a long-time client who tells her they were planning on working with another advertising agency, the best response that is the best application of some post-event strategies of resilience are:
1. Reviewing past emails to see if they offend the client in any way
2. Analyse the listening skills to ensure that the client's needs were met
3. Discuss with a mentor
4. Learn from the whole experience
Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs. results in
a. Results in the highest cost of goods sold.
b. Yields the highest net income.
c. Has the lowest tax expense because of reporting the lowest net income.
d. Better matches current costs with revenues,
e. Precisely matches the costs of items with the revenues they generate.
Answers
Answer:
LIFO is a form of inventory costing that assumes that more recent stock is sold first and early stock sold last. FIFO is the opposite of this and believes earlier stock is sold first and later stock is sold last.
Weighted average uses a weighted price for all available stock and specific identification uses the exact cost of the inventory.
a. Results in the highest cost of goods sold. ⇒ LIFO
This is LIFO because the closing stock that is subtracted from the cost of goods sold will be earlier stock and as costs are rising, it will be lower than the purchases.
b. Yields the highest net income. ⇒ FIFO
Because FIFO gives a lower Cost of goods sold as opposed to LIFO, it gives a higher income.
c. Has the lowest tax expense because of reporting the lowest net income.⇒ LIFO
Reports lowest income due to high cost of goods sold.
d. Better matches current costs with revenues. ⇒ LIFO
LIFO uses the current inventory which would reflect the current cost of inventory so it matches current costs with revenue.
e. Precisely matches the costs of items with the revenues they generate. ⇒ Specific Identification.
Uses the exact cost of the inventory so precisely matches costs.
A project manager has just assigned a team that comes from many countries, including Brazil, Japan, the United States, and Britain. What is her BEST tool for success?
Answers
Answer: Communication and well-developed people skills
Explanation:
Since the team comprises of workers who come from different countries, the best tool is the communication and well developed people skill.
These skills are vital when interacting and communicating with others. Since they're from different countries, communication skill is required to build a relationship with them, motivate them and achieve organizational goals.
You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers you a free ticket to a Post Malone concert that you think is worth $80. What is the opportunity cost to you of going to the Drake concert instead of the Post Malone concert?a) $155b) $20c) $5d) $75e) $80
Answers
Answer: $80
Explanation:
The opportunity cost is regarded as the real cost of the alternative that was left or forgone.
Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.
Therefore, the correct option is E.
The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost
Answers
Answer: each sales dollar that remains after deducting unit variable cost
Explanation:
The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.
The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.
Cost outlays are recorded as an expense when they are incurred to earn revenue in the _______________ accounting period
Answers
Answer:
Present
Explanation:
An outlay cost is a cost incurred at the time when we have to execute the strategy or purchasing an asset. It can be paid to the vendors for purchasing the goods like for inventory. So this cost should be recognized as an expense when they are incurred in order to earn the revenue in the current or present accounting period
Despite aggressive campaigns to attract customers with lower mobile phone prices, Telenor- has
been losing large number of monthly subscribers. Management wants to know why so many
customers are leaving Telenor and what can be done to entice them back. Are customers
deserting because of poor customer services, uneven network coverage, or wireless service
charges? How can the company use information systems to help find the answer? What
management decisions could be made using information from these systems?
Answers
Answer:
the company should do research and find out why costomer are decreasing ,or do surveys, interview
Explanation:
the company must upgrade the service that it way offering before
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 86,400 units per year is: Direct materials $ 1.50 Direct labor $ 2.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 3.75 Variable selling and administrative expenses $ 1.90 Fixed selling and administrative expenses $ 1.00 The normal selling price is $25.00 per unit. The company’s capacity is 122,400 units per year. An order has been received from a mail-order house for 3,000 units at a special price of $22.00 per unit. This order would not affect regular sales or the company’s total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?
Answers
Answer:
Delta Company
1. The financial advantage of accepting the special order is:
= $53,700.
2. The minimum selling price for these units that is relevant is:
= $4.10 (the unit variable manufacturing cost).
Explanation:
a) Data and Calculations:
Normal activity level per year = 86,400 units
Direct materials $ 1.50
Direct labor $ 2.00
Variable manufacturing overhead $ 0.60
Variable manufacturing cost per unit $4.10
Fixed manufacturing overhead $ 3.75
Variable selling and administrative expenses $ 1.90
Fixed selling and administrative expenses $ 1.00
The normal selling price = $25.00 per unit.
The company’s capacity is 122,400 units per year
Special Order:
Sales revenue $66,000 (3,000 * $22)
Cost of goods:
Variable manufacturing 12,300 (3,000 * $4.10)
Contribution margin $53,700
Quantity demand is 385 and quantity supplied is 203 calculate the shortage
Answers
Answer:
Shortage = 182 units
Explanation:
Given:
Quantity demanded = 385
Quantity supplied = 203
Find:
Shortage
Computation:
In economic terms, a shortage occurs when the amount sought exceeds the quantity available at the market price.
Shortage is difference between Quantity demanded and Quantity supplied.
Shortage = Quantity demanded - Quantity supplied
Shortage = 385 - 203
Shortage = 182 units
________ would be hurt by unexpected inflation. a. A firm that purchased inputs with a two-year contract b. A worker whose wage increases with inflation c. A worker who signed a two-year wage contract d. A firm who hired a worker on a two-year wage contract
Answers
Answer:
a firm who hired a worker
Explanation:
on a two year wage contract
A firm that hired a worker on a two-year wage contract would be hurt by unexpected inflation. Thus, option D is correct.
What is inflation?Inflation, in financial aspects, aggregates expansions in the stockpile of cash, in cash salaries, or in costs. Expansion is by and large considered an exorbitant ascent in the general degree of costs.
While high expansion is by and large thought to be hurtful, a few financial experts accept that a modest quantity of expansion can assist with driving monetary development.
Inter worker was having job security for at least 2 years but due to inflation, he might not have a job. This is the most unexpected thing that the person could experience. As it will be treated as something that has caused hindrances in his planning.
Therefore, option D is correct.
Learn more about Inflation, here:
https://brainly.com/question/29308595
#SPJ6
Health and Wealth Company is financed entirely by common stock that is priced to offer a 15 percent expected return. If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected return on the common stock after refinancing
Answers
Answer: 18%
Explanation:
The expected return on the common stock after refinancing will be calculated thus:
Let's assume that common stock is 1000. Therefore, return will be:
= 15% × 1000 = 150
Since 25% of the common stock is repurchased, this will be:
= 25% × 1000 = 250
Then, this 250 is financed by debt at 6%, and this will be:
= 6% × 250 = 15
Then, the new return will be:
= 150 - 15 = 135
Expected Return will now be:
= 135/(1000 - 250)
= 135/750
= 18%
Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. (Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) check all that apply Fund amount is being reduced.unanswered Fund amount is being increased.unanswered Fund is being eliminated.unanswered Fund is being established.
Answers
Answer:
Fund amount is being reduced.
Fund is being eliminated.
Explanation:
For example, when you are recording the expenses paid using the petty cash fund, you debit the expenses and credit the petty cash fund account. This also applies when the petty cash fund is too large and the company wants to reduce it; cash will be debited and the petty cash fund account will be credited.
You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Which of the statements are true regarding the inflation tax?IncreasedDecreasedNot affectedAnswer Banka. rate of the forward reactionb. activation energy of the forward reactionc. activation energy of the reverse reactiond. rate of the reverse reaction
Answers
Answer:
The federal government reserves the power to print money. By printing money to pay its debts, the government decreases the value of money and causes the inflation tax.Explanation:
As per the Constitution, the Federal government reserves the sole right to print currency. This ensures that all the states have a stable medium of exchange thereby allowing goods and services to flow across states undisturbed.
When the government prints money to enable it pay off its debt, the value of the currency decreases because the supply of money has increased relative to its demand. As a result, the currency will only be able to buy less than it was able to buy before thereby creating a sort of inflation tax because people would be paying an extra amount in order to purchase goods and services
Record the journal entry for Sales and for Cash Over and Short for each of the following separate situations.a. The cash registerâs record shows $420 of cash sales, but the count of cash in the register is $430.b. The cash registerâs record shows $980 of cash sales, but the count of cash in the register is $972.
Answers
Answer and Explanation:
The journal entry is shown below:
Cash $430
To Sales revenue $420
To Cash over and short $10
(Being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
Cash $972
Cash over and short $8
To Sales revenue $980
(being cash is recorded)
Here cash is debited as it increased the assets and credited the sales as it also increased the revenue
15) A factory manager can improve EVA by A) increasing earnings and increasing capital employed. B) increasing capital employed and reducing earnings. C) reducing earnings and reducing capital employed. D) increasing earnings and reducing capital employed.
Answers
Answer: D) increasing earnings and reducing capital employed.
Explanation:
Economic Value Added (EVA) shows how much residual income that a company has after it subtracts the cost of the capital invested from the operating profit that the company got.
If a manager wants to increase EVA therefore, they need to reduce the capital used so that the cost of capital will be less. This should be done while earnings are increased for an even higher increase in EVA.
Innovation is the introduction of
Answers
New goods or Services or Improvement in offering goods or services.
_________________________[tex]\bf \Large \hookrightarrow \:More \: \: Information : [/tex]
[tex]\Large{\textrm{{{\color{blue}{What \: is \: Innovation ? \: }}}}}[/tex]
Innovation is the process and outcome of creating something new, which is also of value.
E6-9 Littleton Books has the following transactions during May May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May 3 Pays cash for freight costs of $200 on books purchased from Readers. May 5 Returns books with a cost of $400 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account. Required 1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. 2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.
Answers
Answer:
Littleton Books
Journal Entries:
May 2 Debit Inventory $3,300
Credit Accounts Payable (Readers Wholesale) $3,300
To record the purchase of books on account, terms 1/10, n/30.
May 3 Debit Freight-in $200
Credit Cash $200
To record the freight paid for the books of May 2.
May 5 Debit Accounts Payable (Readers Wholesale) $400
Credit Inventory $400
To record the return of some books.
May 10 Debit Accounts Payable (Readers Wholesale) $2,900
Credit Cash $2,871
Credit Cash Discounts $29
To record the full settlement on account, including discounts.
May 30 Debit Accounts Receivable $4,000
Credit Sales Revenue $4,000
To record the sale of books on account.
Debit Cost of goods sold $2,900
Credit Inventory $2,900
To record the cost of books sold.
May 24 Debit Accounts Payable (Readers Wholesale) $2,900
Credit Cash $2,900
To record the full settlement on account.
Explanation:
a) Data and Analysis:
May 2 Inventory $3,300 Accounts Payable (Readers Wholesale) $3,300
terms 1/10, n/30.
May 3 Freight-in $200 Cash $200
May 5 Accounts Payable (Readers Wholesale) $400 Inventory $400
May 10 Accounts Payable (Readers Wholesale) $2,900 Cash $2,871 Cash Discounts $29
May 30 Accounts Receivable $4,000 Sales Revenue $4,000
Cost of goods sold $2,900 Inventory $2,900
May 24 Accounts Payable (Readers Wholesale) $2,900 Cash $2,900
If a real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, which specialization would the license holder likely choose?
Answers
Answer: Property management
Explanation:
Property management refers to the operation, oversight and the maintenance of real physical properties and real estate.
Since the real estate license holder wants to assist a property owner by soliciting tenants, collecting rents, and being responsible for property maintenance, the license holders should be specialized in property management.
John is working on his department's annual plan. Employee performance has been okay and commitment to his department's goals moderate. In the past John
has asked his employees to do their best. This year he is asking each employee to work with him in determining exactly what that employee is going to
accomplish this year. John wants his people to feel the goals are theirs, to invest in their accomplishment. He wants them to believe that they can accomplish
these goals. He thinks he can help this whole process by meeting with each employee quarterly and talking about where the department is and where the
employee is in regards to goal accomplishment. In the past what principle of goal setting did John violate?
O A) Goal commitment
OB) Assigning specific goals
O Setting difficult but acceptable goals
OD) Providing feedback on goal attainment
Answers
Answer:B
Explanation:
Discuss the two differences of Theory X and Y. Give example
Answers
The management of Felipe Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2020 if either the FIFO or the LIFO method had been used. For 2020, the accounting records show these data:
Answers
Question Completion:
Inventories:
Beginning 9,940 units $19,880
Ending 24,140 units
Total net Sales (255,600 units) $1,060,740
Cost of goods purchased (269,800 units) $867,620
Quarterly Purchases:
Quarters Units Unit Costs Total Costs
1 71,000 $2.98 $211,580
2 56,800 3.10 176,080
3 56,800 3.26 185,168
4 85,200 3.46 294,792
Answer:
Felipe Inc.
Income Statement for the year ended December 31, 2020:
FIFO LIFO
Sales Revenue $1,060,740 $1,060,740
Cost of goods sold 803,976 825,304
Operating results $256,764 $235,436
Explanation:
a) Data and Calculations:
Quarters Units Unit Costs Total Costs
Beginning 9,940 $2.00 $19,880
1 71,000 $2.98 211,580
2 56,800 3.10 176,080
3 56,800 3.26 185,168
4 85,200 3.46 294,792
Total 279,740 $887,500
Units sold 255,600
Ending inventory = 24,140 (279,740 - 255,600)
FIFO:
Cost of goods sold
= Cost of goods available for sale - Ending inventory
= $803,975.60 ($887,500 - $83,524.40)
Ending Inventory:
= $83,524.40 (24,140 * $3.46)
LIFO:
Cost of goods sold
= Cost of goods available for sale - Ending inventory
= $825,304 ($887,500 - $62,196)
Ending Inventory:
= (9,940 * $2.00) + (14,200 * $2.98)
= ($19,880 + $42,316)
= $62,196
On January 1, 2020, Cheyenne Company purchased 40% of Santos Corporation 465,000 outstanding shares of common stock at a total cost of $13 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $934,000 for the year and the market price of its common stock was $14 per share. Prepare all necessary journal entries for Mica company for 2020.
Answers
Solution :
The following journal entry will be prepared to record the transactions
Date General Journal Debt($) Credit($)
Jan 1 Investment in Cheyenne Co. 2,418,000
(465,000 x 40% x $13)
Cash 2,418,000
Oct. 25 Cash (465,000 x 40% x $0.4) 74,400
Investment in Cheyenne Co. 74,400
Dec 31 Investment in Cheyenne Co. 373,600
($934,000 x 40%)
Equity income in Cheyenne Co. 373,600
The secret to effective sales is to have a
unique selling proposition.
good personality.
memorized pitch.
fantastic product.
Answers
Answer:
unique selling proposition.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Generally, the secret to effective sales is to have a unique selling proposition that makes consumers patronize you.
The cost of land includes all of the following except:___.
a. cost of leveling and grading.
b. payments to clear liens.
c. purchase price.
d. cost of fencing and lighting.
Answers
Answer:
The answer is D.
Explanation:
The correct option is D. -The cost of fencing and lighting is not part of the cost of land. Why? - Because this is the cost to improve land.
Option A is wrong. Cost of levelling and grading is part of the cost of land
Option C is wrong. Purchase price is the main cost in the determining the cost of land
Option D is also wrong
