Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paidtransfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for theland, $220,000, and building, $880,000 before renovation.Required:1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.)ItemBuildingLandApportionedcost$No10RenovationcostTransaction1Purchase cost2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactionswere for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)View transaction list View journal entry worksheet$BuildingLandCash0General JournalDebitCredit

Answer : Apportionment of cost of land and Building : Land and building cost paid = $183,500…

Answered: Purch | bartleby

Business

Accounting

Purch

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...

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Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the land, $220,000, and building, $880,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned cost $ No 1 149,280 37,320 186,600 Renovation cost $ Transaction 1 14,320 $ 0 Purchase cost 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Building Land $ Cash 163,600 37,320 200,920 General Journal…
Zeidler Company bought a building and the land on which the building is located for a total cash price of $178,000. The company paid transfer costs of $2,000. Renovation costs on the building were $23,000. An independent appraiser provided market values for the land, $110,000, and building, $330,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Apportioned cost Renovation cost Purchase cost Building Land $ 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated…
Zeidler Company bought a building and the land on which the building is located for a total cash price of $356,000. The company paid transfer costs of $4,000. Renovation costs on the building were $46,000. An independent appraiser provided market values for the land, $100,000, and building, $300,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned Cost Renovation Cost $ 270,000 $ 90,000 360,000 $ 46,000 0 Purchase Cost $ $ 316,000 90,000 406,000 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Roller Inc. purchased a plant and the land on which the plant was located for a total of $300,000 cash. Roller hired an independent appraiser who gave the estimated market values: plant, $220,000; land, $110,000. a. Complete the entry to record the acquisition (show computation). b. Calculate the depreciation expense recorded at the end of the first year for the plant, if Roller uses the straight-line method, and the plant has a useful life of 10 years and $5000 residual value.
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
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Fullerton Waste Management purchased land and a warehouse for $710,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: broker's commission, $41,000; title insurance, $8,500; miscellaneous closing costs, $11,500. The warehouse was immediately demolished at a cost of $29,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building. 3 Capitalized cost of land Capitalized cost of building o
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Fresh Veggies, Inc. (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 amount FVI should record as the cost of the land.
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