escQUESTION 10A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:Purchase price of the landSale of salvaged parts already on landDemolition of the old buildingGround-breaking ceremony (food and supplies)Land preparation and levelingWhat is the total capitalized cost of the land?O $437,500O $417,500O $439,000O $427,500O None of the aboveQUESTION 11Click Save and Submit to save and submit. Click Save All Answers to save all answers.!1☀F1A2N*F2WSw #380F3XED$4F4RC%5F↓F5MacBook AirV>6F6GY&7F7HB$ 400,00020,00040,0001,5007,500* 00*DII8F8N(9F9KM QUESTION 11On August 1, 2024, a company lends cash and accepts a $15,000 note receivable that offers 14% interest and is due in nine months. How wouldthe company record the year-end adjusting entry to accrue interest in 2024? (Do not round intermediate calculations. Round youranswer to the nearest dollar amount.)OSCInterest RevenueO Interest Receivable.OInterest ReceivableO Interest Receivable.<OInterest Revenue.Interest RevenueInterest Receivable.Interest RevenueInterest RevenueInterest ReceivableClick Save and Submit to save and submit. Click Save All Answers to save all answers.!10QAKI2N1F2WSw #380F3XEHD$4aF4RC2,100%875FL9458759455F52,100875< 6945875945MacBook AirGMVY&7BF7H* 008UDIIFBJN-(9FOK)OMSave All AnOAF10

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A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land Sale of salvaged parts already on land Demolition of the old building Ground-breaking ceremony (food and supplies) Land preparation and leveling What is the total capitalized cost of the land? O $437,500 O $417,500 O $439,000 O $427,500 None of the above QUESTION 11 Click Save and Submit to save and submit. Click Save All Answers to save all answers. $ 400,000 20,000 40,000 1,500 7,500

A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land Sale of salvaged parts already on land Demolition of the old building Ground-breaking ceremony (food and supplies) Land preparation and leveling What is the total capitalized cost of the land? O $437,500 O $417,500 O $439,000 O $427,500 None of the above QUESTION 11 Click Save and Submit to save and submit. Click Save All Answers to save all answers. $ 400,000 20,000 40,000 1,500 7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Asura Co. purchased land and building for a lump-sum price of P48,000,000. The existing building will be demolished and a new building will be constructed. Asura incurred the following additional costs: Title guarantee 80,000 Option paid for the land and old building acquired 24,000 Payments to tenants to vacate premises 48,000 Cost of razing the old building 240,000 Construction cost of new building (completed) 34,000,000 The land and old building have fair values of P20,000,000 and P40,000,000, respectively. Some salvaged wood planks from the demolition were used as wall panels in the new building. Asura estimates that the salvaged wood planks have a fair value of P120,000. The other salvaged materials were sold for P60,000. How much is the allocated cost of the old building? Answer:
Merchant Company purchased land for a building site. The costs associated with the property were: Purchase price $ 188,000 Real estate commissions 16,300 Legal fees 2,100 Expenses of clearing the land 3,300 What is the total recorded cost of the land? Mutiple Choice $192,100 $206,400 $188,000 $209,700 $204,300
MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, since the old building is already deemed unusable. The following information relates to the land and building: Purchase price of the land and building P3,500,000 Fair value of the land 3,000,000 Historical cost Land 2.000,000 Old building 6.000,000 Demolition costs 700,000 Which of the following statements are true? C The demolition costs would be capitalized as part of land. O The cost of the new building is P17.100,000 million. O The cost of land is deemed to be P3.000.000. OThe amount of expense lo be recognized is P700.000. Which is equal to the demolition costs since the old building is already unusable.
A company purchased land for $91000 cash. Real estate brokers' commission was $6000 and $6900 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at O $69000. O $103900. O $91000. O $109900.
MAGANDANGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, to build a new building and will not use the old building prior to its demolition. The following information relates to the land and building: Purchase price of the land and building P3,500,000 Fair value: Land 3,000,000 Old building 2,000,000 Historical cost Land 2,000,000 Old building 6,000,000 Demolition costs 700,000 Construction cost of the new building…
int Item Exercise 8-21 (Algorithmic) (LO. 2) Lopez acquired and placed in service a building on June 1, 2018, for $8,470,300. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as residential rental real estate. 307,980 b. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as nonresidential real estate. 217,178
Carver Inc. purchased a building and the land on which the building is situated for a total cost of $700,000 cash. The land was appraised at $320,000 and the building at $480,000. Required What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.
MAGANDANGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, to build a new building and will not use the old building prior to its demolition. The following information relates to the land and building: Purchase price of the land and building P3,500,000 Fair value: Land 3,000,000 Old building 2,000,000 Historical cost Land 2,000,000 Old building 6,000,000 Demolition costs 700,000 Construction cost of the new building 15,000,000 Which of the following statements are true? O The cost of land is deemed to be P2.800,000. O The Company will recognize P1.400.000 as part of its buildings. under property. plant and equipment, prior to demolition. O The amount of expense to be recognized is P2.100.000. Which is the demolition costs and the carrying value of the old building. O The cost of the new building is P17,100.000 million.
What is the cost of the land, based upon the following data? Land purchase price $184,449 Broker's commission 18,832 Payment for the demolition and removal of existing building 5,505 Cash received from the sale of materials salvaged from the demolished building 1,490 $fill in the blank 1
Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price Applicable sales tax Cash discount taken for prompt payment Freight paid Cost of insurance coverage on machine while in transit Installation costs Testing and adjusting costs Repair of damages to machine caused by the firm's employees Prepaid maintenance contract for first year of machine's use Determine the acquisition cost of the machine. Acquisition Cost = $ $30,000 2,000 400 260 125 3,000 475 750 300
Merchant Company purchased land for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land What is the total recorded cost of the land? $ 184,000 15,900 1,700 2,900
Denver Co. acquired real estate for the construction of a building and other facilities. Operating equipment was also purchased and installed. Cost of land purchased as a building site Architect's fee for design of new building P170,000 23,000 28,000 Paid for the demolition of an old building on the building site purchased above Paid land tax on the real estate purchased as a building site 1,700 Paid Geodetic engineer 10,000 Paid excavation costs for the new building 15,000 Made the first payment to the building Contractor 250,000 Paid for equipment to be installed in the new building 148,000 Received from sale of salvaged materials from demolishing the old building Paid Civil engineer (6,800) 20,000 Made final payment to the building Contractor 350,000 Paid interest on building loan during Construction 22,000 Paid freight on equipment purchased 1,900 Paid installation costs of equipment 4,200 Paid for repair of equipment damaged during installation 2,700 Property ledger account…