Busy Beaver, Inc. purchased land ten years ago for $30,000. At December 31, 2012, similar land has been appraised at $50,000. Answer the following questions:
1. At what amount should land be reported on the balance sheet under U.S. GAAP?
2. Which basis is more reliable, historical cost, $30,000, or fair market value, $50,000?
3. Which basis is more relevant, historical cost, $30,000, or fair market value, $50,000?
4. How might the land be reported using IFRS?
1. $30,000; 2. historical cost; 3. fair market value; 4. IFRS allows (but does not require) the land to be reported at its fair value, $50,000.
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Identify the technique Sega is utilizing when they charge an extremely low price for their "Play Station" and make up the lower margin on the base unit by higher margins on game sales
a. captive product pricing b. product bundle c. smart pricing d. subscription pricing e. price lining
The horse spoke up first, "I'm twice your size and can work twice as hard. It doesn't matter how much needs to be hauled from the grassy area in the comedy pasture down to the pond, I can do it easily in a day."
Of course, the horse would use only routes connected by his nodes of interest, Grass, Barn, Oak, Hay and Pond. Use the capacities indicated on each of the branches to determine the maximal flow down to the pond.