Westwood Properties bought three lots in a subdivision for a​ lump-sum price. An independent appraiser valued the lots as​ follows:     Lot  Appraised Value Lot 1  $132,000 Lot 2  110,000 Lot 3  198,000 Westwood paid $355,000 in cash. Record the purchase in the​ journal, identifying each​ lot's cost in a separate Land account. Round decimals to two​ places, and use the computed percentages throughout. ​(Record a single compound journal entry. Record debits​ first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not​ abbreviate.)

Q: Kingston Clothing purchased land, paying $96,000 cash and signing a $210,000 note payable. In…

A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…

Q: Carver Inc. purchased a building and the land on which the building is situated for a total cost of…

A: Accounting Equation: The fundamental accounting equation, also referred to as the balance sheet…

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

A: The Asset like land, building and equipment are the fixed assets for the firm and as shown under the…

Q: What amount should be recorded in the building account on 1/1?

A: Property, Plant, and Equipment:  Property, Plant, and Equipment refers to the fixed assets, having a…

Q: The following expenditures were incurred by Grouper Company in purchasing land: cash price $80,000,…

A: Land:   Land has an indefinite life that is used over time and is depreciated. Land is considered to…

Q: Current Attempt in Progress These expenditures were incurred by Cullumber Company in purchasing…

A: As per IFRS 16 Property Plant and Equipment, the cost of Property plant and equipment includes cost…

Q: Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An…

A: Total appraised values = office furniture + Building + Land = $190,000 + $740,000 + $132,000 =…

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

A: Solution of above question are explained below

Q: Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land…

A: A journal is a detailed account that records all the financial transactions of a business, to be…

Q: These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: A Record costs of lump-sum purchase. Note: Enter debits before credits. Transaction 1 General…

A: A lump-sum purchase occurs when several assets are acquired for a single price. Each of the assets…

Q: At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.…

A: Cost allocation is a method of allocating or assigning the total cost to the individual object as…

Q: Concord Pet Care Clinic paid $130,000 for a group purchase of land, building, and equipment. At the…

A: In lump sump purchase, transaction value is allocated in ratio of individual market value of each…

Q: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the…

A: 1. Allocation of total cost among the three assets:-   Date Appraised Value Percent of Total…

Q: Maplewood paid $355,000 in cash. Record the purchase in the journal, identifying each lot's cost in…

A: Total apprised value of all lots = $144,000 + $96,000 + $240,000 = $480,000 Lumpsum price allocated…

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

A: Allocation percentage = Estimated fair value of assets / Total Estimated fair value of all assets…

Q: Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the…

A: cost of land = cost of land and warehouse purchased + brokers commission + title insurance +…

Q: Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost.…

A: Lets understand the basics. When consideration is paid less than the fair value of asset individual…

Q: Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was…

A: Property, Plant, and Equipment:  Property, Plant, and Equipment refers to the fixed assets, having a…

Q: What is the maximum price you would be willing to pay for the business? If an investor group…

A: The objective of the question is to identify the account used to record the additional amount paid…

Q: Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: On April 1, Renner Corporation purchased for $855,000, a tract of land on which was located a…

A: Step 1:n/a Step 2: Step 3: Step 4:

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

A: The basket purchase is a situation where the purchaser purchases a group of assets at a single…

Q: Eastwood Properties bought three lots in a subdivision for a lumpsum price. An independent appraiser…

A: Introduction:-Calculation of total fair value based on information given as follows:-LotAppraised…

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: Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land…

A: Introduction: A journal entry records a business transaction in the accounting system of an…

Q: Doran Realty Company purchased a plot of ground for P800, 000 and spent P2, 100, 000 in developing…

A: Calculation of Total Revenue: Total revenue of Highland = no of lots x selling price.…

Q: RenFair Clothing purchased land, paying $80,000 cash and signing a $220,000 note payable. In…

A: Journal Entry:— It is an act of recording transactions in books of account when transaction…

Q: Concord Pet Care Clinic paid $130,000 for a group purchase of​ land, building, and equipment. At…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: Rodriguez Company pays $358,020 for real estate with land, land improvements, and a building. Land…

A: Percent of total appraised value for land = Total appraised value/Appraised value of land

Q: Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved…

A: It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

Q: On December 1, 20X0, AKE Pte Ltd paid $5,000 to a Real Estate consulting company for a market report…

A: Accounting Standards are the principles which are accepted and adapted by the users of accounting…

Q: The following payments and receipts are related to land, land improvements, and buildings acquired…

A: Cost of real estate acquired as plant side: Land and Building 285,000 + 55000 340,000

Q: Merchant Company purchased land for a building site. The costs associated with the property were:…

A: The Costs associated with the property were include the all cost related to property to use.

Q: Anderson Corporation has purchased a group of assets for $23,200. The assets and their relative fair…

A: Step 1: Determine the Total Value of the AssetsFirst, we add up the individual values of the land,…

Q: 1 2 3 957 Group 1 Group 2 Group 3 15 17 Operating expenses for the year allocated to this project…

A: The net realized income is the income received from recognized sales under the revenue recognition…

Q: Carver Incorporated purchased a building and the land on which the building is situated for a total…

A: Particulars Allocated cost Land (905,300 x 239,452 /1,041,095 ) 208,219 Building (905,300 x…

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.