Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: Cost and book value Fair value based upon appraisal Hager's Land $504000. $576000. $630000. $720000. $576000 720000 Shaw's Land $360000 630000 The exchange was made, and based on the difference in appraised fair values, Shaw paid $90000 to Hager. The exchange lacked commercial substance. The new land should be recorded on Hager's books at

Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: Cost and book value Fair value based upon appraisal Hager's Land $504000. $576000. $630000. $720000. $576000 720000 Shaw's Land $360000 630000 The exchange was made, and based on the difference in appraised fair values, Shaw paid $90000 to Hager. The exchange lacked commercial substance. The new land should be recorded on Hager's books at

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

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

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Two independent companies, Ball and Brown, are in the home building business. Each owns a tract of land for development, b ut each company would prefer to build on the other's land. Accordingly, the agree to exchange their land. An appraiser was hir ed, and from the report and the companies records, the following information was obtained: Ball Co.'s Land Brown Co.'s Land Cost (same as book value) 800,000 500,000 Market value, per appraisal 1,000,000 900,000 The exchange of land was made and based on the difference in appraised values, Brown paid P100,000 cash to Ball. After the exchange, Ball would record its newly acquired land at: O P920,000 O Answer not given O P700,000 O P800.000
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Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. 3. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount ofa. $0b. $6,000c. $10,000d. $40,000 4. For financial reporting purposes, Kalman would recognize a gain on this exchange…
Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount of $6,000 After the exchange, Harglo would record its newly acquired land on its books ata. $120,000b. $102,000c. $136,000d. $166,000
A company purchased land and building from a seller for $900,000. A separate appraisal reveals the fair value of the land to be $200,000 and the fair value of the building to be $800,000. For what amount would the company record land at the time of purchase? Multiple Choice $900,000. $200,000. $180,000. $220,000.
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Lenny Corporation purchased for P690,000 a tract of land on which a warehouse and office building were located. The following data were collected concerning the property: Current Assessed Vendor's Valuation Original Cost Land P280,000 P180,000 Warehouse 320,000 315,000 Office Building 200,000 129,000 P800,000 P624,000 Determine the appropriate amount that Lenny should charge to land. a. P280,000 b. P199,000 c. P241,500 d. P690,000