Allocation of Package Purchase PriceTamock Company purchased a plant from one of its suppliers. The $950,000purchase price included the land, a building, and factory machinery. Tamockalso paid $6,000 in legal fees to negotiate the purchase of the plant. Arnappraisal showed the following values for the items purchased:Assessed ValuePropertyLandBuildingMachinery318,000$126,000456,000TotalF$900,000Using the assessed value as a guide, allocate the total purchase price of theplant to the land, building, and machinery accounts in Tamock Company'srecords.Do not round until your final answers. Round answers to the nearest dollar.

Calculate total purchase price of an asset:Total purchase price of an asset = Purchase price +…

Answered: Allocation of Package Purchase Price…

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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Assume Sambazon.com e sold an acai processing machine for $172,000 cash. If accumulated depreciation on the sale date was $58,311 and a gain of $6,721 was recognized on the sale, what was the original cost of the asset? O $223,590 O $216,869 O $165,279 O $65,032 O $113,689
What is the cost of the land, based upon the following data? Land purchase price $179,980 Broker's commission 15,546 Payment for the demolition and removal of existing building 3,928 Cash received from the sale of materials salvaged from the demolished building 2,519 $fill in the blank 1
Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its product: Invoice price $34,000 Applicable sales tax 2,000 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs 2,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm’s employees 750 Prepaid maintenance contract for first year of machine’s use 400 Determine the acquisition cost of the machine.
WinCo Foods purchased land and a building for a total price of $2,080,000. Individually, the land was appraised at $336,000 and the building at 1,904,000. How much should be recorded as the acquisition cost of each asset? Select one: a. Land $320,000; Building $1,760,000 b. Land $312,000; Building $1,768,000 c. Land $336,000; Building $1,904,000 d. Land $336,000; Building $1,744,000 e. Land $1,040,000; Building $1,040,000
S10-2 Making a lump-sum asset purchase Concord Pet Care Clinic paid $210,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $110,000, the building $88,000, and the equipment $22,000. Journalize the lump-sum purchase of the three assets for a total cost of $210,000, the amount for which the business ve 1 signed a note payable.
Basket Purchase of Copier, Computer, and Scanner for $50,200 with Fair Market Values Copier, $24,200. Computer, $10,285. Scanner, $26,015. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,900. Demolition of building, $5,290. Lumber sold from old building, $2,880. Grading in preparation for new building, $7,000 Construction of New Building Construction of new building, $290,000 RequiredIn case of office equipment, determine the amount of cost to be capitalized in the asset accounts. In case of basket purchase, determine the amount of cost to be capitalized in the asset accounts. In case of land, determine the amount of cost to be capitalized in the asset accounts. In case of new building, determine the amount of cost to be capitalized in the asset accounts.
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Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and accumulated depreciation of $30,000. This equipment was traded in for new equipment with a list price of $60,000. The new machine can be purchased without a trade-in for $56,250 cash. The difference between the fair value of the new asset and the market value of the old asset will be paid in cash. Prepare the entry to record acquisition of the new machine under each of the following separate cases. a. The new machine is purchased for cash with no trade-in. b. The transaction has commercial substance. The old equipment is traded in, and $37,500 cash is paid. c. The same as in part b except that the transaction lacks commercial substance. a. Account Name Dr. Cr. Answer Answer b. Account Name Dr. Cr. Answer Answer Answer Answer Answer Answer Answer Answer C. Account Name Dr. Cr. Answer…
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Sheridan Company acquires land for $71000 cash. Additional costs are as follows. Removal of shed $400 Filling and grading 1800 Salvage value of lumber of shed 170 Broker commission 1330 Paving of parking lot 12000 Closing costs 580 Sheridan will record the acquisition cost of the land as $71000. $75280. $74940. $72910.

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