What is the cost basis recorded in the buyer's accounting records to recognize this purchase? A warehouse with an appraisal value of $145,320 ismade available at an offer price of $168,750. Thepurchaser acquires the property for $40,500 in cash,a 90-day note payable for $26,500, and a mortgageamounting to $62,900.What is the cost basis recorded in the buyer'saccounting records to recognize this purchase?

Concept of Cost BasisThe cost basis is the total amount a buyer records in the accounting books as…

Answered: A warehouse with an appraisal value of…

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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A warehouse with an appraisal value of $145,320 is made available at an offer price of $168,750. The purchaser acquires the property for $40,500 in cash, a 90-day note payable for $26,500, and a mortgage amounting to $62,900. What is the cost basis recorded in the buyer's accounting records to recognize this purchase? a) $168,750 b) $145,320 c) $129,900 d) $121,460
A warehouse with an appraisal value of $145,320 is made available at an offer price of $168,750. The purchaser acquires the property for $40,500 in cash, a 90-day note payable for $26,500, and a mortgage amounting to $62,900. What is the cost basis recorded in the buyer's accounting records to recognize this purchase? a) $168,750 b) $145,320 c) $129,900 d) $121,460 MCQ
A building with an appraisal value of $133,629 is made available at an offer price of $158,926. The purchaser acquires the property for $32,500 in cash, a 90-day note payable for $21,429, and a mortgage amounting to $57,891. The cost basis recorded in the buyer's accounting records to recognize this purchase is
A building with an appraisal value of $132,331 is made available at an offer price of $151,729. The purchaser acquires the property for $35,281 in cash, a 90-day note payable for $28,200, and a mortgage amounting to $57,872. The cost basis recorded in the buyer's accounting records to recognize this purchase is a. $116,448 b. $151,729 c. $121,353 Od. $132,331 All work saved. Used Car I Ford Search Your Local Blue Advantage
A building with an appraisal value of $131,641 is made available at an offer price of $159,680. The purchaser acquires the property for $39,020 in cash, a 90-day note payable for $25,373, and a mortgage amounting to $53,957. The cost of the building to be reported on the balance sheet is O a. $118,350 Ob. $120,660 Oc. $131,641 O d. $159,680
The purchase price for an acquisition is $5,000,000. The buyer pays $15,000 for lender required reports and $10,000 to the title company for insurance and escrow. The seller provides a credit of $50,000 for property tax and $25,000 for repairs. The lender agrees to provide financing for 60% of the cost basis and will charge a 1% origination fee at closing on the loan amount. The MP will provide the balance of the equity and collect 1% of the cost basis at closing as an acquisition fee. What is the cost basis for this acquisition?
A company is considering purchasing a parcel of land that was originally acquired by the seller for $85,000. While the land is currently offered for sale at $150,000, it is considered by the purchaser as easily being worth $140,000, and is finally purchased for $137,000, the land should be recorded in the purchaser's books at:
V6. A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the journal entry to record the purchase Prepare the journal entry to record the purchase:
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Amount of Basket Purchase Recorded Amount Estimated Fair Value Percentage Land % Building Equipment Total $ Next > A 0 O E O e to search 远
Respond to the requirements in each situation. Instructions a. On January 1, 2020, Zarle Inc. sold computer equipment to Daniell Co. The sales price of the equipment was $520,000 and its carrying amount is $400,000. Record any journal entries necessary for Zarle from the sale of the computer equipment in 2020. b. Use the information from part a. Assume that, on the same day the sale occurred, Zarle enters into an agreement to lease the equipment from Daniell for 10 years with annual lease payments of $67,342.42 at the end of each year, beginning on December 31, 2020. If Zarle has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Zarle from the sale and leaseback of computer equipment in 2020. c. Use the information from part b. Now, instead of 10 years, the lease term is only 3 years with annual lease payments of $67,342.42 at the beginning of each year. Record any journal entries necessary…
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Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Percentage Amount of Basket Purchase Recorded Amount Estimated Fair Value Land % Building Equipment % Total $ ere to search ASUS

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