Comptel Corporation purchased land, a building and equipment for a total cost of $525,000. The appraised values of the land, building and equipment were $150,000, $375,000 and $75,000, respectively. The purchase price allocated to the equipment should be
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- Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Purchase price of the land $ 1,310,000 Demolition and removal of old building 91,000 Clearing and grading the land before construction 205,000 Various closing costs in connection with acquiring the land 53,000 Architect's fee for the plans for the new building 61,000 Payments to Maxtor for building construction 3,360,000 Equipment purchased 915,000 Freight charges on equipment 43,000 Trees, plants, and other landscaping 56,000 Installation of a sprinkler system for the landscaping 6,100 Cost to build special platforms and install wiring for the equipment 23,000…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.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.
- I need answerGarrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $140,000; buildings, $175,000; and equipment, $35,000. Required: 1. What cost should the company assign to the land, buildings, and equipment, respectively? 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $128,000, $155,000, and $28,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $153,000, $157,000, and $25,000, respectively. Prepare the journal entries that Garrett should make to value its property, plant, and equipment.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
- Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,800,000. According to independent appraisals, the fair values were $855,000 (building A) and $475,000 (building B) for the buildings and $570,000 for the land. Required:Determine the initial valuation of the buildings and the land.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.Land and a building on the land are purchased for $310,000. The appraised values of the land and building are $66,000 and $264,000, respectively. The cost allocated to the building should be: a. $25,200 b. $109,800 c. $135,000 d. $248,000
- What value should be allocated to the building for this accounting question?Question: Zinski Co. paid $150,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Land, $20,000, Building, $150,000, and Office furniture, $30,000. Based on this information the cost that would be allocated to the land isFullerton Waste Management purchased land and a warehouse for $710,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: broker's commission, $41,000; title insurance, $8,500; miscellaneous closing costs, $11,500. The warehouse was immediately demolished at a cost of $29,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building. 3 Capitalized cost of land Capitalized cost of building o