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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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.
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