Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $218,800. The Focus Company initiallyoffered to buy the land for $176,413. The companies settled on a purchase price of $214,769. On the same day, another piece of land on the same block sold for $234,151Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?Oa. $176,413Ob. $214,769Oc. $234,151Od. $218,800 On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,009 Accounts Receivable, $8,558 Supplies, $1,841 Land, $24,746Accounts Payable, $5,893. What is the amount of owner's equity (John Wong's capital) as of July 1 of the current year?

The concept under which the assets' acquisition is recorded at the amount paid for it can be…

Answered: Donner Company is selling a piece of…

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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On June 25, Obermayer Repair Service extended an offer of $90,000 for land that had been priced for sale at $103,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $98,000. On October 1, the land was assessed at a value of $147,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $157,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$fill in the blank
On December 1, 20X0, AKE Pte Ltd paid $5,000 to a Real Estate consulting company for a market report of the property market. The market survey was favourable and AKE Pte Ltd decided to make an entry into the property market. On January 1, 20X1 the company purchased two buildings paying $800,000 for Building X and $1,200,000 for Building Y. The company paid $20,000 to the property agent and incurred an additional $80,000 legal fee to finalise the transaction. Both buildings have useful life of 40 years and zero residual value. The company uses straight- line method for depreciation of all its non-current assets. The company intends to use Building X as their office and rent out Building Y. The company adopts revaluation model for its PPE and fair value model for its investment property. Any accumulated depreciation at the date of the revaluation will be eliminated against the gross carrying amount of the asset. At the end of the year 20X1, values of the two buildings were as below:…
On June 25, Obermayer Repair Service extended an offer of $135,000 for land that had been priced for sale at $154,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $147,000. On October 1, the land was assessed at a value of $221,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $235,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$
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A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land? Muitiple Choice $87,500. $85.200. $86,200.
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $221,567. Focus Company initially offered to buy the land for $181,076. The companies settled on a purchase price of $209,946. On the same day, another piece of land on the same block sold for $231,997. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? Oa. $221,567 Ob. $231,997 Oc. $209,946 Od. $181,076
On May 7, Carpet Barn Company offered to pay $72,520 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $86,190. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $133,610 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?$fill in the blank 1
Please don't given handwriting solution....
Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000; and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? Note: Round intermediate percentage values to a whole percentage. Multiple Choice $235,562 $66,500 $160,000 $120,000
Consider each of the independent transactions below: a) The University of Belize traded an older version vehicle with a newer model at Bravo Motors. The initial cost of the older version was $50,000 and accumulated depreciation up to the time of trading, was $41,000. The fair value at the time is $13,000. As part of the trading, the University paid $42,000 in cash. b) Jacky's Car Rentals traded a piece of land for a vehicle from Ozark Company. The fair values of the land and the vehicle are $75,000 and $49,000 respectively. Jacky received $26,000 to complete the transaction. Required: Assume you provide accounting services for the University and for Jack's Car Rentals, 1. Determine gain/loss on each transaction and the FV of the new asset acquired 2. Prepare journal entries to record each of the two transactions
Rocket Ltd, purchased a building from Moon Ltd. for $ 6.500.000. The payment was made as to 25% by accepting a bill of exchange, and for the balance debentures are allotted at 25% premium. Journalise in the books of purchaser.

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