Blossom Company purchases land for $180000 cash. Blossom assumes $5900 in property taxes due on the land. The title and attorney fees totaled $1900. Blossom has the land graded for $4200. They paid $25000 for paving of a parking lot. What amount does Blossomrecord as the cost for the land?

Blossom Company purchases land for $180000 cash. Blossom assumes $5900 in property taxes due on the land. The title and attorney fees totaled $1900. Blossom has the land graded for $4200. They paid $25000 for paving of a parking lot. What amount does Blossomrecord as the cost for the land?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: urchased land costs 2,500,000 and a Bank transfer is made. The cost of excavation of the old…

Q: Wellsley Corporation purchased an old building and the land on which it is located for $70,000. The…

A: The capitalized cost is the cost of fixed assets that is reported in the balance sheet of the…

Q: On March 1, 2020, Pina Colada Corp. acquired real estate on which it planned to construct a small…

A: THE COST OF LAND INCLUDES THE COST OF LAND , COST OF ALL EXPENSES RELATED TO THE PREPARATIONS OF THE…

Q: $200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid…

A: Given information : Purchase price = $200,000 Attorney fees = $7,500 Real estate transfer tax =…

Q: Lavallee Furniture purchased land, paying $75.000 cash and signing a $340,000 note payable. In…

A: Formulas: Cost of land = Price of land + Note payable + Property tax + Title insurance + Demolition…

Q: Kingston Clothing purchased land, paying $96,000 cash and signing a $210,000 note payable. In…

A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…

Q: Bev bought a small mom and pop grocery store. The sale was completed and Bev obtained ownership on…

A: Intangible Assets: An intangible asset is an asset that needs real substance. This is as opposed to…

Q: On August 15, 2021, Bob bought a rental house. The property cost $310,000. Of this, the land was…

A: As per GDS MACRS method, for residential rental property- 27.5 year, straight line class with mid…

Q: Harding Corporation acquired real estate that contained land, building and equipment. The property…

A: The Asset like land, building and equipment are the fixed assets for the firm and as shown under the…

Q: At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The…

A: Total Sales:- It is the value of those goods which are ready for sale in the market including profit…

Q: Reiley Co. purchased land as a factory site for P1,000,000. Reiley paid P40,000 to tear down two…

A: All fixed assets in the business should be capitalized with purchase cost and all other direct costs…

Q: T purchased a 600 acre farm for $60,000. T sells to a power company an easement for 20 acres along…

A: Where the underlying facts show that the grant of an easement affects just a section of an actual…

Q: A company purchases a new building for $500,000. They pay $100,000 in cash and finance the remainder…

A: The objective of this question is to understand how to record the acquisition of a building and land…

Q: At what amount should the land be recorded? b.At what amount should the new office building be…

A: Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was deemed…

Q: A vacant lot is acquired for $83,000 cash. Later the owner borrows $52,000 against the land. Three…

A: Whenever an asset is sold it results in cash inflow for the entity and increase the cash balance of…

Q: Blossom Clinic purchases land for $450000 cash. The clinic assumes $4000 in property taxes due on…

A: Cost of asset is purchase price and all other costs required to make the asset ready to use As to…

Q: Brady Self Storage purchased land, paying $175,000 cash as a down payment and signing a $160,000…

A: Non-current assets are assets which are held by the company for more than a year. These cannot be…

Q: Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down…

A: The land is purchased at a fixed sum, and the costs of preparing the site for construction are…

Q: Year 0 1 2 Recognized Gain

A: The installment method of revenue recognition is applied when the sale value is paid in…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Cost of Land = Purchase Price of Land + Legal Fees + Demolition of Old Building - Sale of scrap from…

Q: Milloy Furniture purchased land, paying $75,000 cash and signing a $250,000 note payable. In…

A: Cost of assets means the amount at which the asset is bought. It is the cost at which the assets are…

Q: Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An…

A: Total appraised values = office furniture + Building + Land = $190,000 + $740,000 + $132,000 =…

Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…

A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…

Q: Belvidere Self Storage purchased land, paying $165,000 cash as a down payment and signing a $180,000…

A: COST ALLOCATION When item of cost are Identifiable directly with some products or departments such…

Q: Barney Stinson purchased land and a building for his new men’s clothing store. The price paid was…

A: Historical cost of the building = Total Purchase cost for land and a building x fair value of the…

Q: Ken sold a rental property for $608,000. He received $140,000 in the current year and $117,000 each…

A: Income tax is the amount payable to government on the income generated by the taxpayer in the…

Q: These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: Alpine Clothing purchased land, paying $125,000 cash and signing a $270,000 note payable. In…

Q: What is the accounting term for this type of acquisition?

A: Answer: When a company purchases a building and land together for a lump sum amount, the purchase…

Q: On April 1st, Leo

A: Any residential rental property placed in service after 1986 is depreciated using the…

Q: Shannon Miller, Inc. purchased land, paying $90,000 cash as a down payment and signing a $120,000…

A: Land and building are the non-current or long term assets which are shown in the balance sheet.…

Q: Werner's Fish House purchases a tract of land and an existing building for $870,000. The company…

A: When any land and building is purchased, initial expenditure is incurred to clean the land, tear…

Q: Frankfurt corporation purchased land for $90,000. The company also paid $15,000 in accrued property…

A: Property, plant, and equipment (PP&E) are tangible, long-term assets that are used to generate…

Q: The company has a list of equipment they sold during the tax year. Please review the list and answer…

A: In the given question we need to answer the following questions : a. Calculate the Realized Gain or…

Q: the following expeditures were incurred by Obermeyer company in purchasing land : cash price…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Land and building are the fixed assets for a company, used in production process. Though building…

Q: Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for…

A: Capitalized cost of the land = Purchase price + Demolition costs of old building - Scrap sold +…

Q: Yager Corporation purchased residential real estate several years ago for $245,000, of which $35,000…

A: Ordinary Income under Sec.291: Under Section 291 of the Internal Revenue Code (IRC), certain types…

Q: The following payments and receipts are related to land, land improvements, and buildings acquired…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Item Land land improvements Building…

Q: Ms. Cruz, a licensed real estate broker obtained a net listing of P6,500,000.00. She sold the…

A: Commission under accounting is defined as the expense or the revenue to the business during the…

Q: Purchased land - $120,000, paid $9,000 to tear down a dilapidated building, paid $15000 to install a…

A: Land: It is generally considered to have unlimited life and it's not depreciated. The land is…

Q: Ion Co. purchased land for $190,000. lon also paid $5,000 in real estate commissions, $1,000 in…

A: Cost of asset is the amount paid for an asset and for expenses incurred in putting the asset in use.…

Q: Required information [The following information applies to the questions displayed below.] Russell…

A: Sale value of asset means value for which asset is being sold out. Basis in asset means adjusted…

Q: 2) Thompson Glacier Limited purchased a tract of land and contracted with a commercial developer to…

A: Trees and Shrubs , lighting around the parking area , pavement of parking lot , security fence are…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1. Charlie Company acquired an adjacent plot to construct a new warehouse paying $301000 in cash. Attorney's fees paid were $1500, previous property taxes assumed were $13000. The company also paid $50,000 architect's fees for the construction of the new warehouse. Determine the cost of the land to be reported on the balance Sheet. 2. Merchandise with an invoice price of $6900 is purchased with terms of 1/10, n/30, FOB Destination. Transportation costs of $130 was paid by the appropriate party. What is the total amount of cash paid by the purchaser to acquire the merchandise in this scenario if payment is made within the discount period? 3. A generator machine was purchased on July 1, 2018 with a cost of $147000 and estimated salvage value of $7000, the generator machine is expected to have a useful operating life of 78000 hours. The machine will be used for routine work and is expected to be used for 3100 hours for 2018 and it is expected that for the year 2019 it will be driven twice…
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $481,000; Building, $1,430,000 and Equipment, $949,000. What journal entry would be used to record the purchase of the above assets? (Do not round intermediate calculations.)
Manji
Jane purchased an office building for the total acquisition price of $1,000,000.00. The value of the land was $250,000.00. The value of the personal property was $100,000.00. The value of the mortgage was $500,000.00. The value of the leasehold was $850,000.00. What is her depreciable basis for the real estate? Please don't provide solution in an image format thanku
TP was gifted vacant land with a basis of $22,000and a FMV at the time of the gift of $20,000. Sold it 3 years later for $25,000. What is the recognized gain?
A company purchased land for $350000 cash. The real estate brokers' commission was $15000 and $61000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land is $350000. $365000. $426000. $411000.
Question: Alton Clothing purchased land, paying $88,000 cash plus a $250,000 note payable. In addition, Alton paid delinquent property tax of $1,900, title insurance costing $500, and $4,200 to level the land and remove an unwanted building. Record the journal entry for the purchase of the land.
Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and signing a $250,000 note payable. In addition, Lawson paid delinquent property tax of $5,000, title insurance costing $4,000, and $9,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $54,000 for a fence around the property, $12,000 for a sign near the entrance, and $8,000 for a special lighting of the grounds. Requirements Determine the cost of the land, land improvements, and building. Which of these assets will Lawson depreciate?
munabhai
Terry purchased a machine for $12,000; the seller is holding the note. Terry paid $2,400 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $3,600. Terry owes $8,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choices $10,800 $8,400 $2,800 $16,400
* Explain.
Northstar industries purchases land for $175,500 cash. The title and attorney fees totaled $1000. Northstar has the land regradeed for $2,200. What amount is recorded as the cost for the land?