Which of the following statements regarding corporate bonds is most correct? a. Debentures are riskier than subordinated debentures because they are paid last in the event of bankruptcy.

Answers

Answer 1

Answer:

The answer is C. The interest rate on subordinated debentures is likely to be higher than the interest rate on debentures

Explanation:

The options to the question are under the 'Ask about this question'

Debentures are long-term security (bond) that is not secured by any collateral. It is being issued based on the past record of the issuer i.e the issuer's creditworthiness and also its reputation.

What is subordinated debenture? - This is also an unsecured loan but ranks below the table i.e some loans are above it in the ranking.

The interest or yield on subordinated debts is usually higher because it is more risky than the normal debentures.


Related Questions

PDX Corp. acquired 100% of the outstanding common stock of Sea Corp. in a business combination accounted for using the acquisition method. The cost of the acquisition exceeded the fair value of the identifiable assets and assumed liabilities. The general guidelines for assigning amounts to the inventories acquired provide for

Answers

Answer:

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

Explanation:

Acquisition Accounting tells about how to report accounts and with what amount in a consolidated financial statements. It also helps in assigning values to goodwill, NCI and combined business operations like Marketing, Selling, Manufacturing costs, etc.

Under Acquisition Accounting the net assets are always valued at their fair market value and the inventory is reported at:

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

On January 1, 20X1, Brecon Co. installed cabinets to display its merchandise in customers' stores. Brecon expects to use these cabinets for five years. Brecon's 20X1 multi-step income statement should include

Answers

Answer:

One fifth of the cabinet costs in selling expenses.

Explanation:

Here brecon will account for a fraction of the cost of the cabinet in its selling expenses each year for the period used, five years. This is because the cabinet is seen as a selling expense here. The apportioned cabinet expense for the year will therefore appear under operating expenses in the multi step income statement

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven. This contract may not be assigned if

Answers

Answer:The assignment will significantly change the risk of nonperformance

Explanation:

The contract between Raph and Sven may not be signed if the following is breached;

•The assignment will significantly change the risk of nonperformance

•The assignment is expressly prohibited by the terms of the contract.

•The contract is uniquely personal in nature.

According to the classification system of voluntary and involuntary career changers, an involuntary career changer is in transition for what type of reasons

Answers

Answer: external

Explanation:

According to the classification system of voluntary and involuntary career changers, an involuntary career changer is in transition for external type of reasons.

It should be noted that the reason for this involuntary career change can be due to restructuring in organization which brings about that job elimination.

"Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property. What happened to Jenson and Susan's agreement?"

Answers

Answer:

The agreement terminates by force of law.

Explanation:

When an agreement is formed between two parties and it is not closed, if there is an impairment on performance by one of the parties them the agreement is terminated by the force of law.

Impairment in the ability to perform in a contract be as a result of unavoidable circumstances.

In this case Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property.

The agreement is terminated because Jenson won't be able to provide the property to Susan. His ability to perform his own role in the agreement is impaired because the property has been destroyed by the hurricane

On July 22, Peter sold $23,500 of inventory items on credit with the terms 2/15, net 30. Payment on $15,000 sales was received on August 1 and the remaining payment was received on August 12. Assuming Peter uses the gross method of accounting for sales discounts, which one of the following entries was made on August 1 to record the cash received?
a. Cash..........14,700
Sales Discount. 300
Accounts Receivable 15,000
b. Cash.... 15,000
Accounts Receivable. 15,000
c. Cash.... 14,700
Accounts Receivable 14,700
d. Accounts Receivable. 300
Sales Discount Forfeited.. 300

Answers

Answer:

Entries that were made on August 1 to record the cash received is :

a. Cash..........14,700

Sales Discount. 300

Accounts Receivable 15,000

Explanation:

When the Inventory items were sold the entries are :

Trade Receivables $23,500 (debit)

Sales Revenue $23,500 (credit)

When payment is received on August 1, the payment is made within the discount period and the customer is eligible for the 15% cash discount.Entries would be as follows :

Cash $14,700 (debit)

Discount allowed $300 (debit)

Trade Receivable $15,000 (credit)

(Scenario: A Monopolist) A monopolist faces a demand curve given by P = 20 Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing output level?

Answers

Answer:

The correct option is a.5.

Explanation:

Note: This question is not complete as some important signs are committed from it. The complete question is therefore provided before answering the question as follows:

A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing output level?

a.5

b.6

c.7

d.8

The explanation of the answer to the question is now provided as follows:

A monopolist refers to the a person or company who is the only supplier of a commodity in the market.

For a monopolist, profit is maximized when marginal revenue (MR) is equal to the marginal cost (MC). That is, where MR = MC. This implies that the profit-maximizing output level of a mopolist can be obtained by setting MR equal to MC.

Since in the question, we are given the following:

MR = 20 - 2Q ………………………………………. (1)

MC = 2Q ……………………………………………… (2)

We can therefore equate equations (1) and (2) and solve for Q as follows:

MR = MC

20 – 2Q = 2Q

20 = 2Q + 2Q

4Q = 20

Q = 20 / 4

Q = 5. This is the profit maximizing output level.

Therefore, the correct option is a.5.

"Pat bought a house and got a new interest-only loan. She paid $12,600 in interest the first year and the sale price of the property was $210,000. What was the interest rate?"

Answers

Answer:

The interest rate is 6%

Explanation:

The computation of the interest rate is shown below:

Interest rate is

= Interest paid for the first year ÷ Sale price of the property

where,

Interest paid for the first year is $12,600

And, the sale price of the property is $210,000

Now place the values to the above formula

So, the interest rate is

= $12,600 ÷ $210,000

= 6%

Hence, the interest rate is 6%

Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe. The company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports. What is triggering the employees' unethical behavior?

a. national differences in factors of production
b. cultural differences of countries
c. unrealistic performance goals
d. varying ethical standards in different nations
e. strong personal ethics among employees

Answers

Answer: c. unrealistic performance goals

Explanation:

From the question, we are informed that Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe and that the company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports.

Based on the scenario above, the issue triggering the employees' unethical behavior is unrealistic performance goals. Since the employees don't meet their target, they falsify their sales report.

Bank statements, business reports, and tax records are filed according to subject and then are subdivided _______.

Answers

Answer:

chronologically

Explanation:

The important documents for the business organization i.e. bank statements, reports of business, tax records should be filed as per the subject and then it subdivided in a chronological manner i.e. one by one

These documents should be kept with proper care and diligence also the information related to these documents should not be disclosed out to any third party i.e. only authorized persons should be involved

Taylor is a procurement specialist for Hillside Corporation. He is reviewing contracts, and notices a pattern between three particular contractors. Contractor A bid the lowest on the first job, Contractor B bid the lowest on the second job, and Contractor C bid the lowest on the third job. All three contractors bid on all three jobs. Which of the following is a potential scheme perpetrated by these contractors?

a. Bid tailoring
b. Bid rotation
c. Complementary bids
d. Phantom bids

Answers

Answer:

B

Explanation:

Bid rotation is when contractors collude and  take turns in winning a bid. Colluding contractors submit bids but take turns being the low bidder.

Bid-tailoring is when an employee in collusion with a contractor tailors bid specifications to give an unfair advantage to a certain contractor.

Complementary bids are bids intended only to give the appearance of a genuine bid. Colluding  bidders submit higher priced or deliberately defective bids to in order to ensure the selection of the designated winner at inflated prices.  

Phantom bids are fake bids

The tax assessment ratio for a house valued at $250,000 is 80%. If the tax rate is $2.00 per $100 what is the annual tax?

Answers

Answer: $5,000

Explanation:

given data:

tax ratio = 80%

valuation of the house = $250,000

tax rate = $2/$100.

solution:

total annual tax

= $250,000 /$100

= $2500

total tax rate = $2/$100

= $2 * $2,500

= $5,000.

therefore, the total tax due to be payed annually is $5000. This would have not been the case if it has been 80% generally.

Answer:4000

Explanation:

During the rainy season, people look to buy raincoats and umbrellas. Elements, an apparels manufacturer, caters to this need. Which action would represent the conversion of this need into a want?

Answers

Answer:

The definition of the problem is listed in the Clarification column elsewhere here.

Explanation:

By implementing a collection talking things-through umbrellas that illuminate throughout the night, Raindrop will turn the said requirement into something like a desire. Needs represent situations of poverty as perceived. The marketing functions are to suit one's requirement, maybe with a should get for food, some rather than the need for IHOP cakes as well as McD's fries.

The action that represent the conversion of the need into a want is the raindrop which introduces a line of see-through umbrellas that glow in the dark.

Consumer needs are those things that satisfy their basic requirement while Consumer wants are those requests that are directed to specific types of items.

The manufacturer leverage on the trying to convert human's need into a want for more profit.

In conclusion, the  action that represent the conversion of the need into a want is the raindrop which introduces a line of see-through umbrellas that glow in the dark.

Read more about want & need

brainly.com/question/17889008

The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,800 shares outstanding at a market price of $21 a share. Maggie's Flowers has 2,300 shares outstanding at a price of $32 a share. Maggie's Flowers is acquiring The Floral Shoppe for $37,000 in cash. The incremental value of the acquisition is $2,800. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers

Answers

Answer:

the net present value is $3,600

Explanation:

The computation of the net present value is shown below:

Net present value = Incremental value - additional cost incurred

where,

Incremental value is $2,800

And, the additional cost incurred is

= $37,000 - 1,800 × $21

= $37,000 - $37,800

= -$800

So, the net present value is

= $2,800 - (-$800)

= $3,600

Hence, the net present value is $3,600

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%. About how much did the company pay for the land

Answers

Answer:

The company paid $278,031

Explanation:

Giving the following information:

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%.

To calculate the past value of the land, we need to use the following formula:

PV= FV/(1+i)^n

PV= present value (20 years ago)

n= 20

FV= 575,000

i= 0.037

PV= 575,000 / (1.037^20)

PV= $278,031

A large scale study conducted over a one year period has shown that break-ins at home occur about 6% of the time in the population. the study also shows home security alarms went off 4% of the time when no one was breaking into the home. the security alarm failed to go off 3% of the time when someone was really breaking into the home. what is the probability that a home has been broken into and the alarm did not go off?

Answers

Answer:

0.0018

Explanation:

The computation of the probability in the case when the home is broken and the alarm did not go off is shown below:

= P(Broken into) × P(Alarm did not go off)

= 0.06 × 0.03

= 0.0018

By multiplying the broker into with the alarm did not go off so that the probability could come and the same is to be considered

A home was appraised for tax purposes at 70 percent of its $150,000 purchase price. The mill rate is 28.6. What are the annual taxes?

Answers

Answer:

$3,003

Explanation:

The computation of the annual taxes is shown below:

= (Given percentage × purchase price × mill rate) ÷ (1,000)

= (0.70 × $150,000 × 28.6) ÷ (1,000)

= (3,003,000) ÷ (1,000)

= $3,003

Hence, the annual taxes is $3,003

We simply applied the above formula so that the annual taxes could come and the same is to be considered

Higher nominal interest rates ______ the amount of money demanded and higher real income ______ the amount of money demanded.

Answers

Answer:

decreases

increases

Explanation:

Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.

Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.

When completing an enrollment application in LEAN, why is an agent prohibited from entering their own email address in a field available for the consumer's email address?

Answers

Answer:

This is because of the ethics guiding the body. For example, ethically, it is wrong for the agent to put his email address in the application in LEAN where it should have been the customer's own. There is a possibility of the identity theft or fraud being committed when such happens.

Explanation:

Brand 123 has customers in many countries purchasing its bicycles, but its managers are unsure if the brand is truly a "global brand." To be a global brand, how much of Brand 123’s revenue should come from other countries? a. 50% b. 40% c. 70% d. 30%

Answers

Answer: d. 30%

Explanation:

Global brands are companies that have achieved international success such that they are recognised in many other countries apart from their own and have many customers in other countries as well.

However, simply being known abroad does not classify a company as a global brand. The company must be generating sufficient revenue from their operations outside as a proportion of their total revenue their home country with sufficient meaning at least 30% of their revenue.

Employers will often provide such perks as health insurance and paid vacation that are designed to be attractive and useful to employees. Collectively these perks are known as:

Answers

Answer:

employee benefits.

Explanation:

Employers will often provide such perks as health insurance and paid vacation that are designed to be attractive and useful to employees. Collectively these perks are known as employee benefits.

They are typically incentives that are being introduced by employers of labor so as to enhance their welfare and by extension to encourage them to put in their best in their respective duties, roles or job functions.

Select the best answer: A Notary Signing Agent has been providing signing services with no incidents for over 10 years without having undergone a background screening. Therefore he or she:

Answers

Answer:

Must still arrange to obtain and pass a background screening

Explanation:

A notary agent is also called a signing agent and they obtain the official signature of an appearer on a document. They ensure that legal documents are authentic, they check identity of the person signing, and serve as witness.

Notary agents are required to obtain a background check every 12 months.

Background checks verify identity, address, criminal record search, vehicle records, and known terrorist list check.

So the notary agent that has been providing signing services for 10 years still needs to obtain a background check.

"A customer in a low tax bracket has just inherited $10,000 and is looking for an investment that will provide current income and liquidity. The BEST recommendation is a:"

Answers

Answer:

The missing options are as follows:

A. Corporate Bond ETF

B. Variable Rate Bond

C. Municipal Bond Fund

D. Treasury STRIPS

Correct option is A, Corporate Bond ETF

Explanation:

Since corporate bond EFT is traded on a recognized exchange, divesting in no distant time makes the investment the most liquid out of the options provided.

Also, income is also received on periodically, mostly on semiannual basis in terms of receipt of coupon interest.

Above, the principal is repaid at maturity, in other words, the investor receives cash all the way.

Ideally, the price established for a transfer of goods or services between two decentralized organizational units within a company would be one that would always motivate the managers of both units to act in a way that is in the best interest of the company as a whole.
A. True
B. Flase

Answers

Answer:

A. True

Explanation:

Firms that operate different divisions or subsidiaries must always present a consolidated balance that includes all the department, divisions or subsidiaries. Any gain resulting from inter company sales must be adjusted, i.e. your right arm cannot make a profit if it sells to your left arm.

Whenever inter company sales take place, ideally, the ultimate goal should be to improve the entire company's financial position, not only improve the gains from one division by hurting another division.

The average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents. Water Inc. manufactures the same product for 0.10 cents while its average price is 0.40 cents. Which of the following statements is most likely true of Water Inc. in this scenario?A. It has a competitive advantage in the industry.B. It has a competitive disadvantage in the industry.C. It has competitive parity with other firms in the industry.D. It has formed a strategic alliance with other firms in the industry.

Answers

Answer: A. It has a competitive advantage in the industry

Explanation:

From the question, we are informed that the average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents and that Water Inc. manufactures the same product for 0.10 cents while its average price is 0.40 cents.

The scenario shows that Water Inc has a competitive advantage in the industry. This is seen as the bottle of water is produced at a cheaper cost wen compared to its rivals.

Assume that the store Stephanie manages has an employment manual and personnel bulletin that both state that, as a matter of policy, workers will be dismissed only for good cause. Which of the following is true?

a. The employment at will doctrine will override this policy in all cases.
b. The employment at will doctrine will override this policy unless there is a written employment contract that states that the manual and the bulletin will control the employment relationship.
c. The courts may find that the bulletin and manual create an implied contractual right, whether or not there was any expectation of reliance by the employees on the policy.
d. The courts may find that the bulletin and manual create an implied contractual right, but only where there was expectation of reliance by the employees on the policy.

Answers

Answer:

The answer is "Option c"

Explanation:

Its Stephanie shop tries its job rule book and staff newsletter, both of which state that employees are only disregarded for great charity as regards policy, that's why its courts can determine its bulletin, as well as manual, generate an implied constitutional obligation, irrespective as to whether employees are expected to rely on the policy.

what kind of technology refers as local technology or indigenous technology ?​

Answers

Answer:

Local technology refers to the technology which are used in our locality from the ancient time and are made of locally available materials for the welfare of local people.

Answer:

Local technology refers to the technology which are used in our locality from the ancient time and are made of locally available materials for the welfare of local people.

Explanation:

Mary Scoot was hired to manage the Cactus Cart, a tiny kiosk located in Sky Harbor Airport in Phoenix. No specific duties were listed, but the business owner who hired Mary told her, "Just sell the plants and deposit the money." Mary would have the implied authority to:

Answers

Answer: take checks as payments

Explanation:

From the question, we are informed that Mary Scoot was hired to manage the Cactus Cart, a tiny kiosk located in Sky Harbor Airport in Phoenix and that no specific duties were listed, but the business owner who hired Mary told her to sell the plants and deposit the money.

In this scenario, Mary would have the implied authority to take checks as payments. This is because she has been told to deposit the money and she can take the checks along to the bank.

"A review of major newspapers across the United States reveals that "help wanted" advertisement lineage has been decreasing. This is a:"

Answers

Answer: leading indicator showing that economic activity is going to increase

Explanation:

From the question, we are informed that a review of major newspapers across the United States showed that "help wanted" advertisement lineage has been decreasing.

This simply means that there's going to be an increase in the economic activity. This is due to the reduction in "help wanted" as it seems many individuals can now meet their needs. This will have a positive effect on the economy.

If the amount realized at a Sheriff's sale upon a delinquent mortgage is more than the indebtedness, the excess belongs to:_____.a. the Sheriff's office.
b. the mortgagee.
c. the mortgagor.
d. the purchaser.

Answers

Answer: The mortgagor

Explanation:

If the amount realized at a Sheriff's sale upon a delinquent mortgage is more than the indebtedness, the excess belongs to the mortgagor.

It should be noted that the mortgagor is the borrower, therefore he or she is the person that is entitled to the excess received upon the sake of the asset.

Other Questions
If a consumer purchases a combination of coffee and football tickets such that Coffee/Coffee = 20 and MU Football tickets/PFootball tickets = 10, to maximize utility, the consumer should by:_________a. more coffee and more football tickets b. less coffee and more football tickets c. less coffee and fewer football tickets d. more coffee and fewer football tickets Que veut dire le mot LOL? Renee wants to put a fence around hersquare garden that has an area of6,500 square feet. Determine theperimeter of the garden to the nearesttenth of a foot. g Our company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division: The main difference between a compound sentence and a compound-complex sentence is that...Select one:A. A compound-complex sentence has one independent and one dependent clause,but a compound sentence has one independent and two dependent clauses.B.A compound sentence has one independent and one dependent clause, but acompound-complex sentence has one independent and two dependent clauses.C.Both have at least 2 independent clauses, but a compound sentence also has adependent clause.D. Both have at least 2 independent clauses, but a compound-complex sentence alsohas a dependent clause The Pampered Pet Hotel cares for dogs and cats while their owners are away. The daily fee for boarding a dog at the hotel is different from the fee for boarding a cat. On Tuesday, 11 dogs and 14 cats stayed at the hotel and the hotel earned \$573.25 . On Friday, 22 dogs and 9 cats stayed at the hoteland the hotel earned 790.25How much does it cost per day to board a dog and a cat at the pet hotel? Which is the largest pyramid in Giza? Everything in a store is discounted by 25%. What is the sale price of a clock with a regular price of $24.60? Angel Perez describes many students as intent on being perfect. To what extent do his claims apply to you and to your approach to school and life? How would you describe your personal attitude toward perfection and failure? 5. If the area of a rectangular field is 21x - 7x and one of its sides is 7x, what is its other side? Activities that generate external costs will likely be carried out at levels that _____ those that would be efficient. The probability that an online student owns a laptop is 0.82 and the probability that a student owns a desktop is 0.65. If the probability that a student owns both is 0.55, find the probability that a student owns a laptop or a desktop. Where should DoD employees look for guidance on safeguarding classified information? If a company has excess capacity, increases in production level will increase variable production costs but not fixed production costs.a. Trueb. False The poet suggests that goodness and beauty are doubly so when were talking about socks, they are delightful because they come in pairs. Do you think this is a serious remark or a tongue-in-cheek (playful/joking) comment? When two or more firms form a ________ agreement and set price and quantity in unison, economists refer to them as ________. Group of answer choices Identify the part of the website that is being defined. ____ are common questions that users may have about a website I'm having a difficult time with my accounting workbook. I post the adjusting entries, but my balance sheet never equalizes. Can someone point me where i'm going wrong? 1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse. 2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Brunos House of Bacon. 3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January. 4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction. 5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Unadjusted trial balance Adjusting entries Adjusted trial balance Dr Cr ref Dr Cr ref Dr Cr Cash 67,520.04 67,520.04 Accounts Receivable 68,519.91 68,519.91 Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70 Merchandise Inventory 1,238.07 1,238.07 Consignment Inventory Prepaid Rent 2,114.55 2,114.55 Prepaid Insurance 2,114.55 2,114.55 Misc. Supplies 170.49 170.49 Baking Equipment 14,000.00 14,000.00 Accumulated Depreciation 1,606.44 1,606.44 Customer Deposit - Accounts Payable 20,262.11 20,262.11 Wages Payable 3,383.28 3,383.28 Interest Payable 211.46 211.46 Notes Payable 5,000.00 5,000.00 Common Stock 20,000.00 20,000.00 Beginning Retained earnings 50,144.84 50,144.84 Dividends 105,000.00 105,000.00 Bakery Sales 327,322.55 327,322.55 Merchandise Sales 1,205.64 1,205.64 Cost of Goods Sold - Baked 105,834.29 105,834.29 Cost of Goods Sold - Merchandise 859.77 859.77 Rent Expense 24,549.19 24,549.19 Wages Expense 10,670.72 10,670.72 Misc. Supplies Expense 3,000.46 3,000.46 Business License Expense 2,045.77 2,045.77 Misc. Expense 1,363.84 1,363.84 Depreciation Expense 677.86 677.86 Insurance Expense 1,091.08 1,091.08 Advertising Expense 1,549.74 1,549.74 Interest Expense 818.31 818.31 Telephone Expense 490.98 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32 LearningDiagnosticAnalyticsSee your levelsWhat is the area of the triangle?7 ft.4 ft.6 ft.square feet On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $280,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2014. Costs incurred during this period are listed below: Demolition of old building $20,000 Architect's fees 35,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 1,340,000 (Salvaged materials resulting from demolition were sold for $10,000.) Nelson should record the cost of the land and new building, respectively, as:_________. a. $305,000 and $1,365,000. b. $290,000 and $1,380,000. c. $290,000 and $1,375,000. d. $295,000 and $1,375,000.