M9-3 Deciding Whether to Capitalize an Expense For each of the following items, enter the correct letter to show whether the expenditure should be capitalized (C) or expensed (E). Soun won Transactions 1. Purchased a machine, $70,000; gave long-term note. 2. Paid $600 for ordinary repairs. 3. Purchased a patent, $45,300 cash. 4. Paid cash, $200,000, for addition to old building. 5. Paid $20,000 for monthly salaries. Paid $250 for routine maintenance. Paid $16,000 for extraordinary repairs. 6. od 7. asinaubal op sy sit duond

M9-3 Deciding Whether to Capitalize an Expense For each of the following items, enter the correct letter to show whether the expenditure should be capitalized (C) or expensed (E). Soun won Transactions 1. Purchased a machine, $70,000; gave long-term note. 2. Paid $600 for ordinary repairs. 3. Purchased a patent, $45,300 cash. 4. Paid cash, $200,000, for addition to old building. 5. Paid $20,000 for monthly salaries. Paid $250 for routine maintenance. Paid $16,000 for extraordinary repairs. 6. od 7. asinaubal op sy sit duond

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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H3.
The president of ACCO 202 Corporation donated a building to Ana G. Méndez Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Ana G. Méndez would a. Make a memorandum entry b. Debit Building for $75,000 and credit Gain for $75,000 c. Debit Building for $200,000 and credit Gain for $200,000 d. Debit Building for $180,000 and credit Gain for $180,000
A company purchased land for $91000 cash. Real estate brokers' commission was $6000 and $6900 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at O $69000. O $103900. O $91000. O $109900.
asv.1
int Item Exercise 8-21 (Algorithmic) (LO. 2) Lopez acquired and placed in service a building on June 1, 2018, for $8,470,300. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as residential rental real estate. 307,980 b. Calculate Lopez's cost recovery deduction for 2023 if the building is classified as nonresidential real estate. 217,178
Borrowing cost (IAS-23) If the acquisition/construction of asset is financed through borrowings then any interest paid on such debt would be capitalized in the value of asset. Test your understanding.3 Acquisition Costs of Realty: Pollachek Co. purchased land as a factory site for $450,000. Process of tearing down two old buildings on the site and constructing the factory required 6 months, The company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300. Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,500, and a liability insurance premium paid during construction was $900. The contractor's charge for construction was $2,740,000. The company paid the contractor in two installments: $1,200,000 at…
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A, B, C
Can I please get help with this question and a quck explaination of how?(5.7) On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $780,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 348,400 Cost of additional land grading 195,400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2,242,000 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 168,000
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City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $20,800. In addition, City paid sales tax and title fees of $960 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,850. Required: a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2