The appraised value of the assets are? Jackson Enterprises purchased a warehouse building, land, and machinery for$2,400,000. Jackson paid $400,000 in cash and issued a 25-year, 7 percent noteto First National Bank for the balance. The appraised values of the assets are asfollows:•••=Land $600,000=Building $1,200,000Machinery $600,000-=Total $2,400,000Based on this information, the amount to be recorded on the books for theBuilding would be:a) $1,200,000b) $1,000,000c) $800,000d) None of the above

Explanation of Lump-Sum Purchase Allocation:Lump-sum purchase allocation is the process of…

Answered: Jackson Enterprises purchased a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed accrued property taxes $4,500, attorney's fees $2,100, real estate broker's commission $3,000, and clearing and grading $4,000. What is the cost of the land? The cost of the land 73900
D7
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Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,995,000. Harding paid $560,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $592,000; Building, $1,760,000 and Equipment, $1,168,000. What value will be reported for the land on the balance sheet? Note: Round intermediate percentage values to a whole percentage. Multiple Choice O O 00 $598,400 $339,150 $1,760,000 $1,161,600
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Lexington Garden Supply paid $160,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $85,000, the building $51,000, and the equipment $34,000. Journalize the lump-sum purchase of the three assets for a total cost of $160,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
Select financial information for Logistical Corp. as at December 31, 20X6, follows: Please find the attached image Additional information is as follows: • During the year, Logistical sold equipment for proceeds of $50,000. The equipment had a cost of $80,000 and accumulated depreciation of $35,000.• During the year, a review of Logistical’s goodwill was completed, and it was determined that the asset was impaired and should be written down by $3,000.• Logistical did not purchase any additional investments in the year. Any changes in the fair value of investments have been adjusted through other comprehensive income. These securities are not cash equivalents.• During the year, a new lease was signed for equipment that had a fair market value of $45,000. Depreciation expense for the year totalled $1,000. The new lease was signed in the year, which required a $7,000 payment at the start of the lease.• Logistical elects to classify any interest paid and dividends paid as financing…
Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase: • Purchase price of the land, $150,000 • Real estate commissions of 7% of the purchase price • Land survey, $5,000 • Back taxes, $5,000 What is the initial value of the land? a. $160,000 b. $160,500 c. $165,500 d. $170,500
Rural Tech Support paid $190,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $100,000, the building $80,000, and the equipment $20,000. Journalize the lump-sum purchase of the three assets for a total cost of $190,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $481,000; Building, $1,430,000 and Equipment, $949,000. What journal entry would be used to record the purchase of the above assets? (Do not round intermediate calculations.)
Buckeye Co. purchased equipment, a building, and land for $500,000 ($200,000 in cash and $300,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $120,000 for the equipment, $270,000 for the building, and $210,000 for the land. Prepare the entry to record the purchase of this property by Buckeye Co.
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%). Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,160,000 units over its 5-year useful life and has a salvage value of $19,000. Harding produced 281,000 units with the equipment by the end of the first year of purchase. Which amount below is closest to the amount Harding will record for depreciation expense for the equipment in the first year? Multiple Choice $371,356 $193,309 $192,848 $366,753

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