A developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000.Required:1.Prepare the journal entry to record the acquisition of the land and building.2.Next Level How should the 10-year agreement be reported in the financial statements?3.Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: developer of a large shopping center…

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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A developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000.

Required:

1.	Prepare the journal entry to record the acquisition of the land and building.
2.	Next Level How should the 10-year agreement be reported in the financial statements?
3.	Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?

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