A company purchases a new building for $500,000. They pay $100,000 in cash and finance the remainder with amortgage. The land the building sits on is appraised at $150,000. Additionally, the company incurs closing costs of $10,000, which are paid in cash. Prepare the journal entries to record the acqusisition and allocate the cost between theland and the building. If you give Al or Chatgpt answers i will give 20 downvotes

The objective of this question is to understand how to record the acquisition of a building and land…

Answered: A company purchases a new building for…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 45P

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Some of the following items should be treated as capital and some as revenue. Carriage paid to bring the purchased machinery to the works. Complete redecoration of the premises at a cost of Kshs.150,000. A quarterly account for heating. The purchase of a soft drinks vending machine for the canteen with a stock of soft drinks. Wages paid by a building contractor to his own workmen for the erection of an office in the builder's stockyard. Required: For each item, give an appropriate classification. Give justification for each classification.
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