ABC purchased a plant, including land, building and machinery, for P110,000. These items were carriedon the books of the seller as follows: land, P30,000; building. P60,0003; and machinery, P30,000.Immediately after the purchase, the assets were appraised at the following values: land, P30,000%3;building, P45,000; and machinery. P75,000. What cost should ABC record for the Building?

Total appraisal value of assets = Land + building + machinery = P30000+45000+75000 = P150,000

ABC purchased a plant, including land, building and machinery, for P110,000. These items were carried on the books of the seller as follows: land, P30,000; building. P60,000; and machinery, P30,000. Immediately after the purchase, the assets were appraised at the following values: land, P30,0003; building, P45,000; and machinery. P75,000. What cost should ABC record for the Building?

ABC purchased a plant, including land, building and machinery, for P110,000. These items were carried on the books of the seller as follows: land, P30,000; building. P60,000; and machinery, P30,000. Immediately after the purchase, the assets were appraised at the following values: land, P30,0003; building, P45,000; and machinery. P75,000. What cost should ABC record for the Building?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

See similar textbooks

Similar questions

Excellent Company purchased a plant, including land, building and machinery, for P 110,000. These items were carried on the bools of the seller as follows: land, P 30,000; building, P 60,000; and machinery, P 30,000. Immediately after the purchase, the assets were appraised at the following values: land, P 30,000; building, P 45,000; and machinery, P 75,000. QUESTION: What cost should Excellent record for the land, building and machinery, respectively? O P 36,666; P 36,667; P 36,667 O P 22,000; P 33,000; P 55,000 O P 27,500; P 55,000; P 27,500 O P 24,000; P 30,000; P 66,000
The S. Sirap Co. acquired Land, Building, and Equipment for a total price of $1840000. An independent appraisal of the assets at the time of purchase was as follows: Land at $500000, Building at $1200000 Equipment at $600000. Calculate in good form the cost assigned to each asset.
The Zylo Corp. made a basket purchase of Land, Building, and Equipment for $6250000. The appraised value of each asset was listed as follows. Land at $1500000, Building at $3900000, and equipment at $1200000. Required: Calculate the cost assigned to each asset.
SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair values were $2,400,000, $1,200,000, and $400,000 for the building, land, and equipment, respectively. The company recorded the building for $2,160,000. What was the total purchase cost for all three assets? Select one: a. $3,400,000 b. $3,600,000 c. $3,200,000 d. $3,800,000 e. $4,000,000
provide the answer
Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the acquisition, Nathan Jacob's $15,000 to have the property appraised. The following values were determined from the appraisal: land, $125,000; building, $235,000; and equipment, $150,000. Required: 1. What cost should Nathan Jacob’s assign to the land, buildings, and equipment, respectively? 2. Provide the journal entry to record the acquisition on the books of Nathan Jacob’s.
SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair values were $1,800,000, $900,000, and $300,000 for the building, land, and equipment, respectively. The company recorded the building for $1,620,000. What was the total purchase cost for all three assets?
Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places. A. $171,000 B. $132,000 C. $316,667 D. $114,000
Rodriguez Company pays $352, 755 for real estate with land, land improvements, and a building. Land is appraised at $207,000; land improvements are appraised at $69,000; and the building is appraised at $184,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. \table[[ \table[[Appraised], [Value]],\table[[Percent of Total], [Appraised], [Value]],\table[[x Total Cost of], [Acquisition]],\table[[Apportioned], [Cost]]]. [Land,...]. [Land improvements...]. [Building....]]
Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.
At the beginning of the current year, CakeCompany purchased for P5,400,000, including appraiser's fee of P50,000, a warehouse building and the land on which it is located. The following data were available concerning the property: Land (Current appraised value)-P2,000,000 Land (Seller's original cost)-P1,400,000 Warehouse building (Current appraised value)- P3,000,000 Warehouse building (Seller's original cost)-P2,800,000 What is the initial measurement of the land?
2. Prepare the journal entries that Garrett should make to value its property, plant, and equipment under IFRS on December 31. General Journal Instructions PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 4 5 6. 7 8