FrostFrost Enterprises buys a warehouse for $ 530 comma 000$530,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $ 580 comma 000$580,000 for the warehouse. The seller had originally purchased the building for $ 520 comma 000$520,000. FrostFrost has a similar warehouse on the West Coast that has a book value of $ 544 comma 000$544, 000. Under the historical cost principle, FrostFrost should record the building for

FrostFrost Enterprises buys a warehouse for $ 530 comma 000$530,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $ 580 comma 000$580,000 for the warehouse. The seller had originally purchased the building for $ 520 comma 000$520,000. FrostFrost has a similar warehouse on the West Coast that has a book value of $ 544 comma 000$544, 000. Under the historical cost principle, FrostFrost should record the building for

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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XYZ company bought a car with a list price of $30,000. They had to pay $1,500 sales tax in addition to the $30,000 cost. What would happen? Group of answer choices The car would be valued on the balance sheet on the day of acquisition at $31,500. The care would be valued on the balance sheet at $28,500 XYZ company would have tax expense of $1,500. The car would be valued on the balance sheet at $30,000.
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $95,239. The Focus Company initially offered to buy the land for $108,852. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $102,714. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$102,714 b.$95,239 c.$212,000 d.$108,852
Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb exchanges the machine for a newer model that has a market value of $56,000. Record the exchange assuming Caleb paid $31,800 cash and the exchange has commercial substance. Record the exchange assuming Caleb paid $23,800 cash and the exchange has commercial substance.
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $218,252. Focus Company initially offered to buy the land for $179,248. The companies settled on a purchase price of $207,236. On the same day, another piece of land on the same block sold for $231,763. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company
M20.
A tax- and duty-free importation of a 30-horsepower sand mill for paint manufacturing costs P400,000 CIF Manila. Bank charges, arrester and brokerage cost P6,000. Foundation and installation costs were P30,000. Other incidental expenses amount to P25,000. Salvage value of the mill is estimated to be P65,000 after 20 years. Find the appraisal value of the mill using straight-line depreciation at the end of 12 vears.
LAR Corp. purchased a commercial range by paying cash of $13,500. The range's fair value on the date of the purchase was $14,000. The company incurred $600 in transportation costs, $400 installation fees, and paid $500 annual insurance on the equipment. For what amount will LAR record the range? Select one: a. $14,500 b. $15,500 c. $13,500 d. $15,000 e. $14,000
Sam wants to purchase Smith, Inc. The following information is available for Smith from the balance sheet Accounts Receivable Inventory Building Accumulated Depreciation View transaction list 250,000 400,000 625,000 (180,000) The Company estimates that the Accounts Receivable are worth $230,000, the inventory is worth $425,000, and the building is worth $800,000. Everything else is worth its book value. Sam will pay $1,400,000 for Smith, Record the journal entry for this purchase. Journal entry worksheet Note: Enter debits before credits. What is the journal entry to record the purchase? Transaction number Accounts Payable Note Payable Common Stock Retained Earnings Account Name 135,000 275,000 400,000 285,000 Debit Credit
Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect's fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest costs during construction were $43300. The cost of the land should be recorded at $292330. O $294770. O $296510. O $294070.
Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1330. Legal fees of $840 were paid for title investigation and making the purchase. Architect's fees were $10490. Title insurance cost $620, and liability insurance during construction cost $650. Excavation costs were $3430. A contractor was paid $657000 to construct the new building. An assessment made by the city for pavement was $1690. Interest costs during construction were $43000. The cost of the land should be recorded at Select answer from the options below $342930. $344620. $340530. $342220.
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XYZ company bought a car with a list price of $30,000. They had to pay $1,500 sales tax in addition to the $30,000 cost. What would happen? O The car would be valued on the balance sheet on the day of acquisition at $31,500. O The car would be valued on the balance sheet at $30,000. The car would be valued on the balance sheet at $28,500. O XYZ company would have tax expense of $1500.