KIGI s mheducatic Maps Traducir Sp eSantaFe Iriciar s Sistema TA TB MC Qu. 7-56 A company Incurred the following costs associated with the... A company incurred the following costs associated with the purchase of a piece of land that it will use to r Purchase price of the land Sale of salvaged parts already on 1and Demolition of the old building Ground-breaking ceremony (food and supplies) Land preparation and leveling $590,000 $ 20,000 $ 33,000 %24 1,800 $4 8,100 What amount should be recorded for the purchase of the land? Multiple Choice $631100

KIGI s mheducatic Maps Traducir Sp eSantaFe Iriciar s Sistema TA TB MC Qu. 7-56 A company Incurred the following costs associated with the... A company incurred the following costs associated with the purchase of a piece of land that it will use to r Purchase price of the land Sale of salvaged parts already on 1and Demolition of the old building Ground-breaking ceremony (food and supplies) Land preparation and leveling $590,000 $ 20,000 $ 33,000 %24 1,800 $4 8,100 What amount should be recorded for the purchase of the land? Multiple Choice $631100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $2,000 b. Cost of real estate acquired as a plant site: Land 280,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,000 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 3,000 * f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 13,000 j. Money borrowed to pay building…
Brief Exercise 8-5 (Algo) Effect of the disposal of plant assets on the financial statements LO 8-5 Mix & Match Company sold office equipment with a cost of $48,600 and accumulated depreciation of $33,000 for $28,000 cash. Required: a. What is the amount of gain or loss on the disposal? b. How would the sale affect net income (increase, decrease, no effect)? c. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect)? d. How would the event affect the statement of cash flows (inflow, outflow, no effect)? a. b. Effect of sale on net income c. Effect of sale on total assets d. Effect of sale on statement of cash flows
Problem 10-1A (Algo) Part 1-3 Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $526,500; land, $263,250; land improvements, $39,000; and four vehicles, $146,250. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $…
gnment Help Save & Exit Submit Check my work QS 8-2 (Algo) Assigning Costs to plant assets LO C1 Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (Meaning they are included in the cost of the plant assets on the balance sheet) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List Category 1. Insurance on building after construction is complete and it is in use. 2. Permit charges incurred by a delivery driver to transport new equipment to the warehouse. 3. Janitorial costs incurred to clean equipment. 4. Insurance on a new building during its construction. Expensed 5. Sales tax on new equipment purchased. Capitalized-Building 6. Costs to clear and grade land purchased for a new plant. Capitalized-Equipment 7 Property tax on land incurred after it was purchased.…
Merchant Company purchased land for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land What is the total recorded cost of the land? $ 184,000 15,900 1,700 2,900
The following property and equipment section was obtained from a recent Abbott Laboratories 10-K. Property and equipment, at cost Land. $ 370,949 Buildings. Equipment.. Construction in progress.. 2,655,356 8,813,517 920,599 12,760,421 Less: accumulated depreciation and amortization.. Net property and equipment... 6,757,280 $ 6,003.141 Property and Equipment Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. The following table shows estimated useful lives of property and equipment. Classification Estimated Useful Lives Buildings.. Equipment.. 10 to 50 years (average 27 years) 3 to 20 years (average 11 years) During the year, the company reported $868,808 for depreciation expense. What is Abbott Laboratories' estimated useful life of depreciable assets?
Novak Company acquires land for $56200 cash. Additional costs are as follows: Removal of shed $1720 Filling and grading Paving of parking lot Closing costs 1450 O $60060. O $56200. O $56890. $40050 9000 690 Novak will record the acquisition cost of the land as
TB MC Qu. 08-168 Mohr Company purchases a machine at the... Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is
Required information Problem 8-1A (Algo) Plant asset costs; depreciation methods LO C1, P1 [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $497,250; land, $292,500; land improvements, $68,250; and four vehicles, $117,000. Problem 8-1A (Algo) Part 4 es 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life? Is tax payment less under accelerated depreciation? Yes No
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Blade Date of purchase Jan. 12/21 Jan. 12/21 Jan. 12/21 Depreciation Method* SL DDB SL Cost $ 46,000 32,000 11,400 $ 89,400 Est. Residual Est. Life $ 7,000 15 yrs 10 yrs 5 yrs 2,000 1,200 *SL = Straight-line; DDB = Double-declining-balance On January 7, 2023, the machine blade cracked and it was replaced with a new one costing $11,600 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 18 years instead of 15 years and that the residual value should be increased to $9,200. Required: 1. Prepare the entry to record the purchase of the replacement…
MINT CALKOISES (nollabberged eonels-gninilbod-siduo) suis dood grigio 9- Classifying Long-Lived Assets and Related Cost Allocation Concepts For each of the following long-lived assets, indicate its nature and related cost allocation concept. lo bro sdi in sulay Use the abbreviations shown on the right: od or brod.E Asset 1. Property 2. Delivery vans 3. Warehouse 4. Trademark 5. New engine 6. Franchise 7. Software license 8. Computers 9. Production plant worl Nature Cost Allocation. los301 na 000 B Building stil luisen baian E25 s Equipment svil 29C1 of [ 1sdot50 mcht amor Intangible Land usuborg 16-2 Tot $43.500) and is depre List noitsibergs Nature Tu bommes no pend) oule NO A prilbrans Cost Allocation 1911 530 Depreciation 22.2.28 No cost allocation soy incrupinal no A Amortization myrups are 09-8 LO 9-1