A warehouse with an appraisal value of.... please answer this financial accounting question A warehouse with an appraisal value of $220,000 is offered at a priceof $250,000. The buyer acquires the property for $50,000 in cash, a90-day note payable for $40,000, and a mortgage amounting to$130,000. The cost basis recorded in the buyer's accounting records torecognize this purchase is:a. $250,000b. $220,000c. $270,000d. $200,000

Step 1: Define Cost BasisThe cost basis is the total amount recorded in the accounting records to…

Answered: A warehouse with an appraisal value of…

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

See similar textbooks

Similar questions

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?
Kramer Corporation made a basket purchase of three items. Item X was appraised at $40,000; item Y was appraised at $56,000; and item Z was appraised at S64,000. The purchase price was $129,000. The amount at which item X should be recorded is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) O A. $49,612. O B. $40,000 O C. $9,000 O D. $32,250.
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land, $60,000; building, $220,000; and equipment, $80,000. Journalize the purchase using the relative sales value method. Date Account Debit Credit MM/DD/YY 6 of 9
what is the sale price?
Oa. $119,42 Ob. $123,434 Oc. $159,374 Od. $138,273 48 6 A building with an appraisal value of $138,273 is made available at an offer price of $159,374. The purchaser acquires the property for $35,940 in cash, a 90- day note payable for $24,302, and a mortgage amounting to $59,197. The cost of the building to be reported on the balance sheet is Y H Q Search & 1- 7 U ra 8 L 1914 K IAA ( 9 fio ▶11 O O J L 99+ Std... PAI P MLA Formatting an... ins prt sc General Format // P.... ← delete Previous backspace ENG INTL home InterpreterDetails enter Next > num lock 5:11 PM 2/19/2023 end 7 home C
The purchase price for a new home was $325,000. The buyer put down 20% and the balance was a mortgage for 80% of the purchase price. value at the time of closing was $339,000 and the assessed value was $342,000. What will the buyer pay for one year's property taxes if the A. $8,125 B. $6,500 C. $8,550 D. $8,480
Rental House: Purchase price $79,000, ( Remaining Loan Balance: $66,102) Depreciation Costs $20,000 Sale Price $137,500 I can purchase another rental property for $318,000. What is my tax implication in a Like-Kind Exchange?
50. A buyer will settle on a property on October 15. The buyar is assuning the seller's mortgage at the rate. The seller has paid the October 1 payment, and the interest is paid in arrears. The balance ($ 310,000). What proration is necessary? A. ($ 710.42) to the seller B. ($710.42) to the buyer C. ($ 1,420.83 ) to the seller D. ($1,420.83 ) to the buyer Questions 51-59 are related to content from Section 8 of the Student Manual, "Vaication of textbook readings (Chapters 15 & 16). 51. Which of the following is NOT an example of functional obsolescence? A. a master bedroom with a tiny closet B. a toxic soil condition in the back yard C. a fifteen year old roof D. a five bedroom home with one bath 52. Which of the following is NOT considered by an appraiser? A. property rights B. the local economy C. the future appreciation potential of the property D. the purpose of the appraisal 53. Weighting is most characteristic of which approach to value? A. Cost B. Market data C. Capitalization…
You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $55,000 today and another $55,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 3 %, (b) 5%, or (c) 7%. Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Round your answers to 2 decimal places. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Answer is complete but not entirely correct. Compounding Period Due Payment Interest Amount Total Cost of Rate Land Today a. $ 55,000 3% Annually 3 years S 155,573.62 b. 55,000 5% Annually 3 years 238,121.22 C. 55,000 7% Annually 3 3y years 296.410.920
Garcia Company owns equipment that cost $84,000, with accumulated depreciation of $44,400. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $52,400 cash, (2) $39,600 cash, and (3) $34,500 cash. View transaction list Journal entry worksheet < A в с Record the sale of equipment assuming Garcia sells the equipment for $52,400 cash. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit
A newly-built business property, containing space for a store and twooffices, can be purchased for P1, 200, 000. A prospective buyer estimatesthat during the next 10 years he can obtain annual rentals of at least P458,460 from the property and that the annual out-of-pocket disbursementswill not exceed P60, 000. He believes that he should be able to dispose ofthe property at the end of 10 years at not less than P700, 000. Annualtaxes and insurance will total 2.5% of the first cost.(a)Assume he has sufficient equity capital to purchase the property, andthat the average return he is obtaining from his capital is 20%. Wouldyou recommend the investment? Use ROR method.(b)What recommendation would you make if he had to borrow 25% ofthe required capital, on the basis of a 10-year amortization with interestof 18%? Use Annual Worth Method(c)If the entire capital can be obtained by floating bonds at 15% that willmature in 10 years, what would you recommend? Sinking fund interestis 15%. Use ROR…
Calculate the total goodwill for a pro forma balance sheet given the following details. Details: Equity purchase price: $2,000 Book value: $1,700 Existing goodwill: $100 A. $100 B. $300 C. $200 D. $400

SEE MORE QUESTIONS

Recommended textbooks for you

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

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

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS