Question: Monarch Consultants Corporation obtained a building, its surrounding land, and a computer system in a lump-sum purchase for $375,000. An appraisal set the value of the land at $184,500, the building at $144,000, and the computer system at $121,500. At what amount should Monarch Consultants record each new asset on its books?

Question: Monarch Consultants Corporation obtained a building, its surrounding land, and a computer system in a lump-sum purchase for $375,000. An appraisal set the value of the land at $184,500, the building at $144,000, and the computer system at $121,500. At what amount should Monarch Consultants record each new asset on its books?

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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2. Prepare the journal entries that Garrett should make to value its property, plant, and equipment under IFRS on December 31. General Journal Instructions PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 4 5 6. 7 8
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Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the acquisition, Nathan Jacob's $15,000 to have the property appraised. The following values were determined from the appraisal: land, $125,000; building, $235,000; and equipment, $150,000. Required: 1. What cost should Nathan Jacob’s assign to the land, buildings, and equipment, respectively? 2. Provide the journal entry to record the acquisition on the books of Nathan Jacob’s.
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