Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405.405 for real estate with land, land improvements, and a building. Land is appraised at $243,000, land improvements are appraised at $108.000, and the building is appraised at $189,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.

Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405.405 for real estate with land, land improvements, and a building. Land is appraised at $243,000, land improvements are appraised at $108.000, and the building is appraised at $189,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A-2
Anderson Corporation has purchased a group of assets for $23,200. The assets and their relative fair value are listed below Land Equipment Building $7,300 2,300 3,100 Which of the following amounts would be debited to the Land account? Round any intermediate calculations to two (2) decimal places, and the final answer to the nearest dollar OA $4.233 OB. $4,176 OC. $5.568 OD. $13,224
Only typed solution
Brief Exercise 7-37Cost and Amortization of Intangible Assets On January 2, 2019, Frazier Company purchased a restaurant franchise for $85,000. The terms of the franchise agreement allowed Frazier to have exclusive rights to operate a restaurant under the "Simply Fried" brand name for the next 10 years. Required: Prepare any journal entries related to the franchise that Frazier should make during 2019. Jan. 2 fill in the blank 2 fill in the blank 4 (Record purchase of franchise) Dec. 31 fill in the blank 6 fill in the blank 8 (Record amortization of franchise)
A1 Wholesale Jewelry Company acquires land for $240,000 cash. Additional costs are as follows: Removal of shed $2,000 Filling and grading 6,000 Proceeds from sale of salvage 1,280 materials Broker commission 4,520 Paving of parking lot 40,000 Closing costs 3,400 A1 will record the acquisition cost of the land at A) $255,920. B) $240,000. C) $254,640. D) $257,200.
How much is the total amount that would normally be reported as investment property? A. 130,000,000 B. 128,000,000 C. 137,000,000 D. 106,000,000 Show solution
Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine used in the manufacture of its product: Invoice price Applicable sales tax Cash discount taken for prompt payment Freight paid Cost of insurance coverage on machine while in transit Installation costs Testing and adjusting costs Repair of damages to machine caused by the firm's employees Prepaid maintenance contract for first year of machine's use Determine the acquisition cost of the machine. Acquisition Cost = $ $30,000 2,000 400 260 125 3,000 475 750 300
Manji
Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land improvements are appraised at $79,500; and the building is appraised at $185,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. Land Land improvements Building Totals Appraised Value $ $ 265,000 79,500 185,500 530,000 Percent of Total x Total Cost of Appraised Value Acquisition 50% 15% 35% 100%
Basket purchase allocation Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $255,000. The appraised value of the land is $60,000, and the appraised value of the building is $240,000.Page 215Required:a. Assuming that the building is to be used in Dorsey Co.’s business activities, what cost should be recorded for the land?b. Explain why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land.c. Explain why Dorsey Co. allocated the cost of assets acquired based on appraised values at the purchase date rather than on the original cost of the land and building to Bibb Co. d. Assuming that the building is demolished at a cost of $20,000 so that the land can be used for employee parking, what cost should Dorsey Co. record for the land?
Only need e..... thnakyou
P9-1A Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Lowery Company. Cost of land site, which included an old apartment building appraised at $75,000 $173,000 Legal Fees, including fee for the title search 2, 100 Payment of apartment building mortgage and related interest due at time of sale 9,300 Payment for delinquent property taxes assumed by the purchaser 6,000 Cost of razing the apartment building 17,000 Proceeds from sale of salvaged materials (3,800) Grading to establish proper drainage flow on land site 2, 100 Architect’s fees on new building…