MEG Adventures pays $525,000 plus $13,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $62,000, a building appraised at $211,400, and paddleboats appraised at $255,400. Compute the cost that should be allocated to the building.

MEG Adventures pays $525,000 plus $13,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $62,000, a building appraised at $211,400, and paddleboats appraised at $255,400. Compute the cost that should be allocated to the building.

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...

See similar textbooks

Related questions

Q: Please solve this general accounting question

A: 1. Calculate Total Equity:Debt-to-equity ratio = Debt / Equity0.40 = $350,000 / EquityEquity =…

Q: Calculate the overhead expenses as a percentage of the net sales

A: Overhead expenses as a % of net sales = (Overhead expenses / Net sales) x 100% Net sales = Sales -…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Total Cost Per UnitTotal cost per unit is calculated by dividing the total…

Q: Need answer

A: Explanation of Gross Profit Method:The gross profit method is a technique used to estimate ending…

Q: General Accounting

A: HPR=(Pend−Pbegin)/Pbegin×100Where:Pbegin is the purchase price ($225.50)Pend is the closing price…

Q: The Pixel Company reported total manufacturing costs of $186,000; manufacturing overhead totaling…

A: Explanation of Total Manufacturing Costs: This represents the sum of all costs directly involved in…

Q: I want to correct answer general accounting question

A: Step 1: Definition of Working CapitalWorking capital is a financial metric that measures a company's…

Q: Accounting

A: Step 1: Definition of Accumulated DepreciationAccumulated depreciation is the total depreciation…

Q: Given the following information, what is the gross margin percentage? Sales Sales discounts Sales…

A: To calculate the Gross Margin Percentage, use the formula: Gross Margin Percentage=(Net SalesGross…

Q: Quick answer of this accounting questions

A: Cost of Equity (r)=rf+β×(rm−rf)Where:rf = Risk-free rate = 4% = 0.04β = Beta of the stock =…

Q: What is its ROE

A: To calculate the Return on Equity (ROE), we use the formula: ROE = Profit Margin × Total Asset…

Q: Equity multiplier is 2.5

A: To calculate the Return on Equity (ROE), we use the formula: ROE = Profit Margin × Total Asset…

Q: The total cost of job 333 is

A: Explanation of Direct Materials:Direct materials are the raw materials that are directly used in the…

Q: Net income

A: To calculate the percentage increase in net income, we need to consider the impact of the sales…

Q: 5 Points

A: Option a: This option is incorrect because variable costing does not include fixed manufacturing…

Q: Montain top harware by kirk lynch i need help with the purchase journal on page 9 please. Only…

A: I understand you're working on the "Mountain Top Hardware Practice Set" by Dr. Kirk Lynch and need…

Q: Determine the materials price variance

A: The materials price variance can be calculated using the following formula: Materials Price Variance…

Q: Provide answer

A: Since this reduction increases profit, when COGS is reduced by $5 million, the full $5 million…

Q: Julia earned P300,000 in rendering services. His total expenses are 30%. His net income is? a.…

A: Explanation of Revenue:Revenue refers to the total income earned by a business from its core…

Q: Mirada manufacturing overhead was?

A: Explanation: To calculate whether the manufacturing overhead was over-applied or under-applied, we…

Q: I don't need ai answer general accounting question

A: To calculate the after-tax income from the marketing campaign, you need to account for the tax rate.…

Q: What are liabilities on the balance sheet??? General accounting

A: Step 1: Define Accounting EquationThe accounting equation serves as a basis for the balance sheet.…

Q: A business reports: ⚫ Net income: $15,000,000 . Total assets: $45,000,000 ⚫ Total debt: $20,000,000…

A: Given:Net income = $15,000,000Total assets = $45,000,000Total debt = $20,000,000 Formula:Return on…

Q: Calculate the return on assets and return on equity ratio? General accounting

A: To calculate the Return on Assets (ROA) and Return on Equity (ROE) ratios, we use the following…

Q: How to calculate the gross profit based

A: To calculate the Gross Profit, we can use the following formula: Gross Profit = Sales - Cost of…

Q: A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin…

A: ROE=Net Income/Total EquityLet us rearrange to solve for Net Income: Net Income=ROE ×Total EquityWe…

Q: please solve General Accounting question

A: Step 1: Define Gross ProfitGross profit is the profit made out of the sale revenue adjusted for the…

Q: Expert please provide answer

A: Explanation of Net Sales:Net sales refer to the total revenue generated from selling goods or…

Q: Explain the concept of consolidation in financial reporting. When is a company required to…

A: Concept of Consolidation in Financial Reporting:Consolidation in financial reporting is the process…

Q: A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin…

A: Calculate the net income using the formula for Return on Equity (ROE):ROE=Net Income/Total Equity…

Q: Trendy T's Corporation manufactures t-shirts, which is its only product. The standards for t-shirts…

A: Formula for Direct Materials Quantity VarianceThe direct materials quantity variance measures the…

Q: solve. this general account query

A: Step 1: Recall the Components of Product CostsProduct costs (also known as manufacturing costs)…

Q: Variable overhead:7 fixed: overhead:8

A: Detailed explanation:Capacity: 55,000 unitsCurrent Production and Existing Sales : 50,000…

Q: Can you help me with this accounting questions

A: Step 1: Definition of Lower-of-Cost-or-Market (LCM) MethodThe lower-of-cost-or-market (LCM) method…

Q: Need answer

Q: Calculate the return on assets and return on equity ratio?

A: To calculate **Return on Assets (ROA)** and **Return on Equity (ROE)** for Sunset Café, we use the…

Q: Pinewood Corporation uses the weighted average method.... Please answer the general accounting…

A: Step 1: Define Cost per Equivalent UnitCost per equivalent unit is a measure in process costing that…

Q: Variance are favourable or unfavorable?

A: Explanation of Labor Rate Variance: This measures the difference between the actual hourly rate paid…

Q: Subject:- General Account

A: Detailed explanation:Given:Gross Margin, $ 35000Gross Margin Percentage, 28% of Net Sales Revenue…

Q: Hello teacher please help me this question solution

A: Calculation:Tax-free interest rate: 2%=0.02Marginal tax rate: 25%=0.25The formula for the comparable…

Q: If a transaction is properly analyzed and recorded, a. one account balance will increase and another…

A: Option a: This option is incorrect because transaction being properly analyzed and recorded does not…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Overhead RateThe overhead rate is the percentage of overhead costs allocated…

Q: Need help with this general accounting question

A: Step 1: Define Return on Equity (ROE) Using DuPont EquationThe DuPont equation breaks down ROE into…

Q: General accounting

A: Explanation: Annualized rate of return will be calculated as = (Profit/Initial investment) * No. of…

Q: Help

A: To allocate the cost to the building, you must proportionally allocate the total purchase price…

Q: Need answer

A: Explanation of Net Realizable Value (NRV) Method:The Net Realizable Value (NRV) method is a way to…

Q: Give true answer this financial accounting

A: To compute the net income for the year, we use the following formula: Net Income = Increase in…

Q: What is the target cost per crepe marker

A: The question requires the determination of the cost per unit. Cost per unit, also known as the cost…

Q: Don't use ai given answer accounting questions

A: Step 1: Analysis of information givenTotal overhead cost = $24,000Total direct labor cost =…

Q: Financial accounting -9

A: Explanation of Debt-to-Equity Ratio: The debt-to-equity ratio is a financial metric that compares a…

Question

Compute the cost that should be allocated to the building

MEG Adventures pays $525,000 plus
$13,000 in closing costs to buy out a
competitor. The real estate consists of
land appraised at $62,000, a building
appraised at $211,400, and paddleboats
appraised at $255,400. Compute the
cost that should be allocated to the
building.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

MEG Adventures pays $525,000 plus $13,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $62,000, a building appraised at $211,400, and paddleboats appraised at $255,400. Compute the cost that should be allocated to the building. Give me Answer
Unilever acquires land for $86,000 cash. Additional costs are as follows: removal of shed $300, broker commission $1,530, paving of parking lot $10,000, gardening $1,500, closing costs $560, and a salvage value of lumber of shed $120. Unilever will record the acquisition cost of the land as:
Kate Company submitted an offer to purchase a plot of land that was listed at $120,000. Kate's offer was 10% below the list price and was accepted. Kate paid $10,000 to remove an old structure in order to make the land ready for use as a building site. Title and attorney fees amounted to $3,000. Annual property taxes amounted to $5,000 per year. Based on this information, the cost of the land as shown on the balance sheet equals answer must be correct
Holly, Incorporated has a building that originally cost $460,000. Holly expects to be able to sell the facility for $113,000 at the end of its useful life. The balance of the related Accumulated Depreciation account is $306,000. The depreciable cost of the facility is: Multiple Choice $154,000. $193,000. $347,000. $113,000.
Berry purchased a building (including land) for $711,000. Berry plans to use the building. The land’s value on the purchase date was $159,000, and the building’s value was $552,000. Berry gave a cash down payment of 20% of the total purchase cost and signed a promissory note for the remainder. The company estimates the building will have a useful life of 25 years and a salvage value of $81,000. What is the journal entry for this?
Rodriguez Company pays $352, 755 for real estate with land, land improvements, and a building. Land is appraised at $207,000; land improvements are appraised at $69,000; and the building is appraised at $184,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. \table[[ \table[[Appraised], [Value]],\table[[Percent of Total], [Appraised], [Value]],\table[[x Total Cost of], [Acquisition]],\table[[Apportioned], [Cost]]]. [Land,...]. [Land improvements...]. [Building....]]
Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?
On March 1, 2025, Blossom Supply Company acquired real estate, on which it planned to construct a small office buildingby paying $ 80,000 in cashAn old warehouse on the property was demolished at a cost of $8,000; the salvaged materials were sold for $2,000. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $5,400 real estate broker's fee$9,000 architect's fee, and $15,000 to put in driveways and a parking lot.
Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the purchase price, Soccer Wholesale makes the following expenditures related to the acquisition: broker's commission, $44,400; title insurance, $2,800; and miscellaneous closing costs, $7,300. The warehouse is immediately demolished at a cost of $83,900 in anticipation of building a new warehouse. Determine the amount Soccer Wholesale should record as the cost of the land. Cost of the land
On March 1, 2025, Crane Company acquired real estate, on which it planned to construct a small office building. by paying $86,500 in cash. An old warehouse on the property was demolished at a cost of $9.500; the salvaged materials were sold for $1,960. Additional expenditures before construction began included $1,460 attorney's fee for work concerning the land purchase, $5,150 real estate broker's fee. $8,960 architect's fee, and $15,300 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of the land $
Cala Manufacturing purchases land for $301,000 as part of its plans to build a new plant. The company pays $35,800 to tear down an old building on the lot and $52,922 to fill and level the lot. It also pays construction costs of $1,755,300 for the new building and $110,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View genera