Need help with this question solution general accounting Horizon Investments acquired a property consisting of land, a warehouse,and delivery vehicles for a lump sum of $750,000. The estimated fair valuesof these assets are:⚫ Land: $200,000⚫Warehouse: $500,000⚫ Delivery vehicles: $100,000Using the relative fair value method, determine the amount HorizonInvestments should allocate to the warehouse on its balance sheet.

Step 1: Definition of Relative Fair Value MethodThe relative fair value method is used to allocate…

Answered: Horizon Investments acquired a property…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 30P

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ROK Company purchased a car wash for $500,000. The fair market value of the assets acquired are as follows: Land: $200,000 Building: $300,000 Equipment: $100,000 The book value of the assets were: Land: $200,000 Building: $250,000 Equipment:$50,000 What are the appropriate amounts that Renner should record for the land, building and equipment, respecitvely? Land, $200,000: Building, $250,000; Equipment, $50,000 O Land. $166.667; Building, $250,000; Equipment. $83,333 O Land. $200,000: Building, $300,000; Equipment $100.000 None of the above are correct.
1. Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $75,000, the building’s fair value is $60,000, and the equipment’s fair value is $15,000. Journalize the lump-sum purchase of the three assets for a total cost of $140,000. Assume you sign a note payable for this amount. Show all steps please.
Adista has land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000. Requested: a. PT Adista decided to use the revaluation model for the land (which is a fixed asset). On December 31, 2018, the company recognized a revaluation surplus of the land amounting to Rp 100,000,000. If on December 31, 2019 it is known that the fair value of the land is IDR1,060,000,000, make a journal entry recorded by PT Astina regarding the land in 2019. b. Describe how the accounting treatment differs between the fixed asset revaluation model and the fair value model of investment property.
Industrial Metals purchases land, building, and equipment together for $1.2 million. The estimated fair values of the land, buildings, and equipment are $500,000, $800,000, and $200,000, respectively. What amount should be recorded in the separate account for the land?
can you please solve this
An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2021 had a fair value of P4,800,000.On December 31, 2021 the property was sold for net proceeds of P4,500,000. The entity used the cost model to account for investment property. What is the gain to be recognized for 2021 regarding the disposal of the property? a. 900,000 b. 500,000 c. 800,000 d. 700,000
PEARS Company owned three investment properties. Details of the properties are as follows: (see photo)
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?
Red River Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair values of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment.
Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.
Regal Properties (RP) just acquired land and a building for a single sum of $500,000. An independent appraisal determined the fair values of the assets (if purchased separately) at $350,000 for the land and $250,000 for the building. Prepare the journal entry in table format to record the purchase of the land and building. Need answer

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