Marigold Corp. acquires land for $100000 cash. Additional costs are as follows: Removal of shed Filling and grading Residual value of lumber from shed Paving of parking lot Closing costs $430 O $104890. O $100000. $104460. $120690. 3300 150 15500 Marigold will record the cost of the land as 1310

Marigold Corp. acquires land for $100000 cash. Additional costs are as follows: Removal of shed Filling and grading Residual value of lumber from shed Paving of parking lot Closing costs $430 O $104890. O $100000. $104460. $120690. 3300 150 15500 Marigold will record the cost of the land as 1310

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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Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1330. Legal fees of $840 were paid for title investigation and making the purchase. Architect's fees were $10490. Title insurance cost $620, and liability insurance during construction cost $650. Excavation costs were $3430. A contractor was paid $657000 to construct the new building. An assessment made by the city for pavement was $1690. Interest costs during construction were $43000. The cost of the land should be recorded at Select answer from the options below $342930. $344620. $340530. $342220.
AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750 Insurance during transit 570 Sales taxes 2,870 Cash price 25,250 New parking lot 23,000 Property taxes 4,500 Installation and testing 960 AI Maha will record the acquisition cost of the equipment as: Select one: O a. RO 34,150. O b. None of the answers are correct O c RO 67,850. O d. RO 29,620. O e. RO 44,850.
3
XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation on the machine to date is OMR 32,000. Depreciation rate is 10% per annum straight line method. XL Co. can sell the machine to another manufacturer for OMR 50,000. In order to make the sale, XL Co. must incur a transportation cost of OMR 2000. If XL Co. replaces the machine with a new version, it would cost OMR120,000. The cash flows from existing machine are estimated to be OMR 25,000 for the first two years and OMR 20,000 for the remaining 4 years of the machine’s life. The discount rate at 10 % is: - Year -1 0.909, Year -2 0.826, Years- 3 to 6 inclusive 2.619 (annuity rate) Calculate the value of machine under the four methods identified in the four possible measurement bases with clear steps and calculations .
Pointer Company buys a piece of property in north Toronto that has the following costs associated with the purchase: Invoice price for land and building = $303,500 Legal fees associated with the purchase = $12,000 Unpaid property taxes assumed by Pointer as part of the purchase agreement = $28,000 Cost of having property professionally appraised = $10,350 The appraisal report shows the building has an appraised market value of $400,000 and the land has an appraised value of $100,000. Required 1: What amount should be capitalized as the value of the land on Pointer's book? $ Required 2: What amount should be capitalized as the value of the building on Pointer's book? $ Required 3: If the property acquired will be depreciated in 40 years with no residual value (assume the straight-line depreciation is used), what is the depreciation expense for the first full year of use? $
Mazaya Company acquires land for RO 96,000 cash. Additional costs are as follows Removal of shed RO 400, Fitling and grading 1.530, Salvage value of lumber of shed 120, Broker commission 1530, Paving of parking lot 10,000, Closing costs 650 Mazaya will record the acquisition cost of the land as Select one O a RO 96,00o. O b RO 99.990. O C RO 98,09o. O d RO 99.770.
Uramilaben
Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two building on the land. Salvage was sold for P2,700. Legal fees of P1,740 were paid for title investigation and making the purchase. Architect's fees were P15,600. Land Title insurance cost P1,200. Liability insurance during construction cost, P1300. Excavation cost P5,220. The contractor was paid P1,100,000. An assessment made by the city for pavement was P3,200. Interest costs during construction were P85,000. The cost of the land is The cost of the building is a. 1,201,900b. 1,207,120c. 1,234,420d. none of these
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MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, since the old building is already deemed unusable. The following information relates to the land and building: Purchase price of the land and building P3,500,000 Fair value of the land 3,000,000 Historical cost Land 2.000,000 Old building 6.000,000 Demolition costs 700,000 Which of the following statements are true? C The demolition costs would be capitalized as part of land. O The cost of the new building is P17.100,000 million. O The cost of land is deemed to be P3.000.000. OThe amount of expense lo be recognized is P700.000. Which is equal to the demolition costs since the old building is already unusable.