Concord Company acquires land for $86700 cash. Additional costs are as follows: Removal of shed Filling and grading Salvage value of lumber of shed Broker commission Paving of parking lot Closing costs $250 $96400. $90130. $88380. Ⓒ$90330. 1600 100 1140 9700 540 Concord will record the acquisition cost of the land as

Concord Company acquires land for $86700 cash. Additional costs are as follows: Removal of shed Filling and grading Salvage value of lumber of shed Broker commission Paving of parking lot Closing costs $250 $96400. $90130. $88380. Ⓒ$90330. 1600 100 1140 9700 540 Concord will record the acquisition cost of the land as

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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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.
Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?
Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Building account, if Smitty chooses to use the elimination method to record the revaluation? $30,000 Debit $40,000 Debit None of the above. $70,000 Debit $150,000 Debit
3
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
homework i Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $846,300 cash. The land was appraised at $194,649 and the building at $778,596. Required: a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Check my work Record the purchase in a horizontal statements model. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and…
From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights
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Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $983,000 cash The land was appraised at $248 699 and the building at $881,751 Required: What is the accounting term for this type of acquisition? b. 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? d. Record the purchase in a horizontal statements model.
XYZ Company had the following transactions pertaining to its new office building: Purchase price of land -P1,200.000; Legal fees for contracts to purchase land -P130,000; Architect's fee - P255,000: Demolition of old building on site -P310.000; Sale of scrap from old building -P71,000; Construction cost of new building (fully completed) -P2.450,000: Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -P250.000. At what amount should the building be shown in XYZ statement of financial position of?
A company purchased land for $91000 cash. Real estate brokers' commission was $6000 and $6900 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 would be recorded at O $69000. O $103900. O $91000. O $109900.
Zabinski 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 is: a. $17,500 b. $20,000 c. $25,000 d. $15,000