Jourdan Company purchased a restaurant building, land and equipment for $1,350,000. Deeds paid $250,000 in cash and issued a 20-year, 8 percent note to SunTrust for the balance. The appraised value of the assets are as follows: Land = $300,000, Building = $750,000, Equipment = $450,000. Total = $1,500,000. According to this, the amount to be recorded on the books for the Building would be: a). 750,000 b). 125,000 c). 675,000 d). None of the above
Jourdan Company purchased a restaurant building, land and equipment for $1,350,000. Deeds paid $250,000 in cash and issued a 20-year, 8 percent note to SunTrust for the balance. The appraised value of the assets are as follows: Land = $300,000, Building = $750,000, Equipment = $450,000. Total = $1,500,000. According to this, the amount to be recorded on the books for the Building would be: a). 750,000 b). 125,000 c). 675,000 d). None of the above
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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
Transcribed Image Text:Jourdan Company purchased a restaurant building, land and equipment for $1,350,000.
Deeds paid $250,000 in cash and issued a 20-year, 8 percent note to SunTrust for the
balance. The appraised value of the assets are as follows: Land = $300,000, Building =
$750,000, Equipment = $450,000. Total = $1,500,000. According to this, the amount to be
recorded on the books for the Building would be:
a). 750,000
b). 125,000
c). 675,000
d). None of the above
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