On May 7, Carpet Barn Company offered to pay $80,850 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,300. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $126,060 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

On May 7, Carpet Barn Company offered to pay $80,850 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,300. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $126,060 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

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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On December 1, 20X0, AKE Pte Ltd paid $5,000 to a Real Estate consulting company for a market report of the property market. The market survey was favourable and AKE Pte Ltd decided to make an entry into the property market. On January 1, 20X1 the company purchased two buildings paying $800,000 for Building X and $1,200,000 for Building Y. The company paid $20,000 to the property agent and incurred an additional $80,000 legal fee to finalise the transaction. Both buildings have useful life of 40 years and zero residual value. The company uses straight- line method for depreciation of all its non-current assets. The company intends to use Building X as their office and rent out Building Y. The company adopts revaluation model for its PPE and fair value model for its investment property. Any accumulated depreciation at the date of the revaluation will be eliminated against the gross carrying amount of the asset. At the end of the year 20X1, values of the two buildings were as below:…
On June 25, Obermayer Repair Service extended an offer of $135,000 for land that had been priced for sale at $154,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $147,000. On October 1, the land was assessed at a value of $221,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $235,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$
Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $ 1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $ 2,000 due for the current year after the purchase date. Amos also paid a contractor $ 10,000 to tear down a dilapidated building on the property. The capitalized cos of the land is: A. $61, 150 B. $73, 150 C.$ 71, 150 D. $70,650
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $221,567. Focus Company initially offered to buy the land for $181,076. The companies settled on a purchase price of $209,946. On the same day, another piece of land on the same block sold for $231,997. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? Oa. $221,567 Ob. $231,997 Oc. $209,946 Od. $181,076
Everett Company purchased land and a modern office building on March 1, 20-1 for a combined price of $600,000. $400,000 was paid in cash with the remainder owing on a 5% note payable. The land had a cost of $350,000 and the building had a net book value of $100,000 on the seller's books. The land and building had fair market values of $390,000 and $210,000, respectively on March 1. Everett made the following entry at acquisition?
On May 7, Carpet Barn Company offered to pay $72,520 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $86,190. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $133,610 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?$fill in the blank 1
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Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Answer is complete but not entirely correct. Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Transferred Warehouse Land Mortgage on warehouse Cash Assets Received Land FMV $ 432,500 Original Basis Accumulated Depreciation $ 278,000 $ 55,500 55,000 55,000 63,750 21,000 21,000 FMV $ 444,750 What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Answer is complete but not entirely correct. Description Realized gain Amount $ 167,250 Recognized gain $ 84,750 x Adjusted basis in new property $ 278,000