A plant site donated by a city to a manufacturer that plans to open a new factory should be recorded on the manufacturer's books at Select one: a. one dollar [since the site cost nothing but should be included in the statement of financial position] b. its market value. c. the nominal cost of taking title to it. d. the value assigned to it by the company's directors.

A plant site donated by a city to a manufacturer that plans to open a new factory should be recorded on the manufacturer's books at Select one: a. one dollar [since the site cost nothing but should be included in the statement of financial position] b. its market value. c. the nominal cost of taking title to it. d. the value assigned to it by the company's directors.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
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Which of the following is a capital expenditure? Select one: a. Cleaning, waxing, and polishing a company car b. Purchasing a wastebasket for company office c. Adding a power winch to a company service truck d. Replacing filters on the company furnace e. None of the above
During the current year, Alanna Co. had the following transactions pertaining to its new office building. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. What should Alanna Co. record on its books for the building?
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What dollar amount of the purchase price will be allocated to the building account on this accounting question?
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