Kingbird Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $447,300. The estimated fair values of the assets are land $85,200, building $312,400, and equipment $113,600. At what amounts should each of the three assets be recorded? (Do not round intermediate calculations and round final answers to 0 decimal places e.g. 58,971.)

Kingbird Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $447,300. The estimated fair values of the assets are land $85,200, building $312,400, and equipment $113,600. At what amounts should each of the three assets be recorded? (Do not round intermediate calculations and round final answers to 0 decimal places e.g. 58,971.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Blossom Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A: Cash amount should be allocated based on the ratio of fair value of assets.

Q: Martinez Company owns equipment that cost $1,053,000 and has accumulated depreciation of $444,600.…

A: Computation of impairment loss:

Q: Year 0 1 2 Recognized Gain

A: The installment method of revenue recognition is applied when the sale value is paid in…

Q: On 28 April 20X2, Peele Realty purchased land and building for $5.25 million and $3.39 million,…

A: Here are the journal entries for Peele Realty :1. Revaluation of Land:- 20X2: Increase in land value…

Q: Harding Corporation acquired real estate that contained land, building and equipment. The property…

A: Percent of total appraised value = (Appraised value of asset / Total Appraised value of all…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000.…

A: Allocation Percentage = (Estimated Fair Value of standalone asset /Total Estimated Fair Value)*100…

Q: Tonto Company purchased all property for $280,000. The property included a building, equipment, and…

A: In accounting, the term "property" typically refers to tangible assets that a business or…

Q: formation ing information applies to the questions displayed below.] onstruction makes a lump-sum…

A: Straight line method of depreciation is a concept under which an asset is depreciated at a constant…

Q: Monty Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A: The book in which the company records all its transactions initially is termed as journal book. From…

Q: Required information [The following information applies to the questions displayed below.] Russell…

A: Sale value of asset means value for which asset is being sold out. Basis in asset means adjusted…

Q: Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…

A: The lump sum paid to acquire various assets can be allocated to particular asset on the basis of…

Q: b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? Note: Round…

A: Answer:- Depreciation:- Depreciation is a method of reducing an asset's cost throughout its useful…

Q: Dirt Company purchased land for $5 million dollars in 2008. At December 31, 2020 the land had a…

A: The land was purchased for $5 million dollars. According to the Historical cost concept, fixed…

Q: Required information [The following information applies to the questions displayed below.] Dain's…

A: The "original basis" means the asset's true cost. Capital gains are taxed on the amount of the…

Q: Wildhorse Corp. exchanged Building 24, which has an appraised value of $1,719,000, a cost of…

A: The exchange of business assets means the transfer of assets between two entities or companies. The…

Q: Industrial Metals purchases land, building, and equipment together for $1.2 million. The estimated…

A: Land, building and equipment are fixed assets of a business. These assets are recorded under…

Q: Crane Corp. exchanged Building 24, which has an appraised value of $1,805,000, a cost of $2,723,000,…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

Q: PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000.…

A: There are two methods for subsequent accounting of the fixed assets; which are, Cost model and the…

Q: Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as…

A: In case of barter which has commercial substance, PPE has to be recorded at fair value of the asset…

Q: At what amounts should each of the three assets be

A: Cost of the assets is calculated on the basis of the fair value of the assets.The fair value of each…

Q: Lexington Garden Supply paid $160,000 for a group purchase of land, building, and equipment. At the…

A: Step 1:Apportionment of the lumpsum purchase price among the individual asset:AssetMarke…

Q: Central Purchasing Ltd. (CPL) owns the building it uses; it had an original cost of $8,456,000 and…

A: Lease Accounting -When it comes to maintaining and reporting financial records, lease accounting…

Q: asing Ltd. (CPL) owns the building it uses; it had an original cost of $8,096,000 and accumulated…

A: A lease contract, also known as a lease agreement or rental agreement, is a legally binding document…

Q: Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four…

A: The question is based on the concept of Financial Accounting.

Q: OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was…

A: a.When a assets are exchanged like-kind properties it a becomes nontaxable transaction and no gains…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Kingbird Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $447,300. The estimated fair
values of the assets are land $85,200, building $312,400, and equipment $113,600. At what amounts should each of the three assets
be recorded? (Do not round intermediate calculations and round final answers to O decimal places e.g. 58,971.)
Land
Building
LA
LA
Equipment $
Save for Later
Recorded Amount
eTextbook and Media
DAE
O Search
LDLC
8
F8
DOLL
Attempts: 0 of 3 used
prt sc
home
Submit Answer
end
insert

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

The solutions were all incorrect. Could you please recalculate for me and send the revised answers for land, building, and equipment. Thank you.

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Red River Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair values of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment.
Do not give answer in image
Prepare a schedule showing the intangible assets section of Cheyenne's balance sheet at December 31, 2020. CHEYENNE CORPORATION Intangible Assets Prepare a schedule showing all expenses resulting from the transactions that would appear on Cheyenne's income statement for the year ended December 31, 2020. CHEYENNE CORPORATION Expenses Resulting from Selected Intangible Assets Transactions < <
Windsor Company owns equipment that cost $972,000 and has accumulated depreciation of $410,400. The expected future net cash flows from the use of the asset are expected to be $540,000. The fair value of the equipment is $432,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $487,500; land, $302,250; land improvements, $58,500; and four vehicles, $126,750. Required:1-a. Allocate the lump-sum purchase price to the separate assets purchased.1-b. Prepare the journal entry to record the purchase.2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $32,000 salvage value.3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows: Stewart company’s Piece of Equipment: Cost $1,000,000Accumulated depreciation 400,000Fair Value $800,000 Leonard Corporation’s Building: Cost $1200,000 Accumulated depreciation $550,000 Fair Value $950,000 Required a) Prepare the appropriate journal entries for both companies for the above exchange assumingthey are public companies.b) If Stewart Company paid $100,000 in this transaction. Record the appropriate journal entry inStewart’s books.c) Repeat b) assuming that Stewart Company is a private company and that the fair value ofLeonard’s building is the most determinable fair value
Whispering Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $396,900. The estimated fair values of the assets are land $75,600, building $277,200, and equipment $100,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to O decimal places, e.g. 5,275.) Land Building Recorded Amount $ LA Equipment $ LA
Timberly Construction makes a lump -sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $458, 150; land, $317,900; land improvements, $ 65,450; and four vehicles, $93,500. Required: 1-a. Allocate the lump - sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. 3. Compute the first -year depreciation expense on the land improvements assuming a five-year life and double-declining - balance depreciation.Complete this question by entering your answers in the tabs below.
Comprehensive Information concerning Valnet Corporation's intangible assets is as follows: a. On January 1, 2019, Valnet signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial franchise fee of $94,000. Of this amount, $26,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $17,000 each beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 2, 2019, of the 4 annual payments discounted at 15% (the implicit rate for a loan of this type) is $48,500. The agreement also provides that 4% of the revenue from the franchise must be paid to the franchisor annually. Valnet's revenue from the franchise for 2019 was $920,000. Valnet estimates the useful life of the franchise to be 5 years. b. Valnet incurred $63,000 of experimental and development costs in its laboratory to develop a patent, which was…