On 17-Feb of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The totalcost of the purchase was $1,302,500; $295,000 was allocated to the basis of the land and the remaining $1,007,500 wasallocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.d. Assume the building was purchased and placed in service on 17-Feb of year 1 and is residential property.DepreciationExpenseYear 1Year 2$36,632Year 3$36,632

MACRS is an acronym for Modified Accelerated Cost Recovery System. It is a depreciation method…

Answered: On 17-Feb of year 1, Javier purchased a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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On January 19, Ivanova Inc. buys a land that includes a building and a variety of land improvements (i.e. fencing, parking lots, etc.) for the $300,000 cash. The land was recently appraised at $200,000, the building was recently appraised at $80,000, and the land improvements were recently appraised at $40,000. Journalize the basket purchase of the land, building, and land improvements Date Particulars PR D R C R
Fresh Veggies, Incorporated (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the cost of the land and record the purchase (assuming cash was paid for all expenditures). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of the land. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
A machine (a Section 1231 asset that is also a Section 1245 asset) was acquired on February 5, Year 1 for $180,000. It is five-year MACRS property and cost recovery (accumulated depreciation) totals $110,880 when it is sold. The property was sold for $120,000 on July 31, Year 3. You will need to type your calculation and answer in the box. For example, type in "20,000 - 5,000 = 15,000" to calculate the adjusted basis of an asset that cost 20,000 and had accumulated depreciation of 5,000 when sold. Some items do not need a calculation so for those items just type in the answer. What will follow will be 5 questions related to this asset sale. Provide an answer for every question even if the amount is 0. 1. What is the amount realized?
On July 16, 20YI1, Wyatt Corp. purchased acres of land for $350. The land has been held for a future plant site until the current date, December 31 20Y9. On December 18, 20Y9, TexoPete Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. the TexoPete land is located next to the Wyatt corp. land. thus, both Wyatt corp. and TexoPete inc. own nearly identical pieces of land. What are the valuation of land on the balance sheets of Wyatt corp. and TexoPete inc. using generally accepted accounting principles? how might fair value accounting aid comparability when evaluating these two companies?
On July 16, 20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 20Y9. On December 18, 20Y9, TexoPete Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. The TexoPete land is located next to the Wyatt Corp. land. Thus, both Wyatt Corp. and TexoPete Inc. own nearly identical pieces of land.1. What are the valuations of land on the balance sheets of Wyatt Corp. and TexoPete Inc. using generally accepted accounting principles?2. How might fair value accounting aid comparability when evaluating these two companies?
On July 16,20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 20Y9. On December 18, 20Y9, TexPete land Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. The TexoPete land is located next to the Wyatt Corp. land. Thus both Wyatt Corp. and TexoPete Inc. own nearly identical pieces of land. 1. What are the valuations of the land on the balance sheets of Wyatt Corp. and TexoPete Inc. using generally accepted accounting principles? 2. How might fair value accounting aid comparability when evaluating these two companies?
Shahia Company bought a building for $81,000 cash and the land on which it was located for $122,000 cash. The company paid transfer costs of $11,000 ($8,000 for the building and $3,000 for the land). Renovation costs on the building before it could be used were $28,000.
Rodriguez Company pays $395,380 for real estate with land, land improvements, and a building. Land is appraised at $157,040; land improvements are appraised at $58,890, and the building is appraised at $176,670. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Land Land improvements Building Totals Appraised Value 5 0 Percent of Total Appraised Value 0% Total Cost of Acquisition -Apportioned Cost Required 2 >
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....]]
Tonto Company purchased all property for $280,000. The property included a building, equipment, and land. The building was appraised at $175,000, the land at $126,000, and the equipment at $49,000. Prepare the journal entry to record the property basket purchase.
Rahul
Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following additional costs: cost of clear the land, $ 36,000; cost of paving a new parking lot, $48, 000; cost of lighting for the new parking lot, $24,000. In addition to these costs, Pink Corp was able to sell the timber from clearing the land for $7,000. How much should Pink record in the Land and Land Improvement accounts for this purchase? Select one: a. Land: $1,036,000; Land Improvements: $72, 000 b. Land: $993,000; Land Improvements: $108, 000 c. Land: $1, 103,000; Land Improvements: $0 d. Land: $1,000,000; Land Improvements: $ 108,000 e. Land: $1,029,000; Land Improvements: $72,000

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