Ask Question
16 November, 07:03

lpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $1,200,000. Alpine decided to construct the addition itself at a cost of $1,100,000. What amount should be recorded in the building account?

+2
Answers (1)
  1. 16 November, 07:57
    0
    The amount recorded in the building account will be $1,100,000.

    Explanation:

    Alpine company has asked for bids from various contractor to construct additions in its office building. many contractors replied with a bid offer among which the lowest was $1,200,000. Alpine decided to construct additions itself at a lower cost than the bid received. The amount which is recorded in office building account will be $1,100,000 at which the company has agreed to construct. The accounts of a company should reflect actual expenditures so the amount of $1,100,000 will be actual expenditure of construction which Alpine Company has determined.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “lpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers