Anderson Corporation has purchased a group of assets for $23,200. The assets and their relative fair value are listedbelowLandEquipmentBuilding$7,3002,3003,100Which of the following amounts would be debited to the Land account? Round any intermediate calculations to two (2)decimal places, and the final answer to the nearest dollarOA $4.233OB. $4,176OC. $5.568OD. $13,224

Step 1: Determine the Total Value of the AssetsFirst, we add up the individual values of the land,…

Answered: Anderson Corporation has purchased a…

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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Buffalo Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $277,200. The estimated fair values of the assets are land $51,200, building $192,000, and equipment $76,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 1 decimal place e.g. 18.25124 and final answers to O decimal places, e.g. 5,275.) Land Building Equipment LA Recorded Amount
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A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145
A4
A purchased B, paying $850,000 cash. The books values and fair values of acquired assets and liabilities were: Book asset - Fair Value Current assets net: $130,000 - $125,000 Property, plant, equip: 600,000 - 750,000 Liabilities: 175,000 - 175000 A would record goodwill of: A. $0. B. $150,000 C. $345,000 D. $850,000
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Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000
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-determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building -would the company recognize a gain on the purchase? -record the purchase in a horizontal statements model -record the purchase in general journal format
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Bonita Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $371,700. The estimated fair values of the assets are land $70,800, building $259,600, and equipment $94,400. At what amounts should each of the three assets be recorded? (Do not round intermediate calculations and round final answers to O decimal places e.g. 58,971.) Recorded Amount Land Building $ Equipment $

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