What is the maximum price you would be willing to pay for the business? If an investor grouppurchased the restaurant near the campus for $255,867 and the fair value of the assets they acquiredwas $202,000, identify the account along with its balance, that is used to record the additional amountpaid over the fair value of the assets.

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

Answered: What is the maximum price you would be…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $221,567. Focus Company initially offered to buy the land for $181,076. The companies settled on a purchase price of $209,946. On the same day, another piece of land on the same block sold for $231,997. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? Oa. $221,567 Ob. $231,997 Oc. $209,946 Od. $181,076
Land and a building were purchased by a resturant for $225,000. The down payment was $75,000, and the balance was financed by a mortgage. What amount will be recorded to Mortgage Payable?
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Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000. However, the estimated fair values of the land, building, and equipment are $100,000, $260,000, and $40,000, respectively, for a total estimated fair value of $400,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
A company is considering purchasing a parcel of land that was originally acquired by the seller for $85,000. While the land is currently offered for sale at $150,000, it is considered by the purchaser as easily being worth $140,000, and is finally purchased for $137,000, the land should be recorded in the purchaser's books at:
Westwood paid $245,000 in cash. Record the purchase in the journal indenifying each lots cost in a separate land account. Round the decimals two places and use the computed percentages throughout
How do I do this
Help me selecting the right answer. Thank you
Rodriguez Company pays $352, 755 for real estate with land, land improvements, and a building. Land is appraised at $207,000; land improvements are appraised at $69,000; and the building is appraised at $184,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. \table[[ \table[[Appraised], [Value]],\table[[Percent of Total], [Appraised], [Value]],\table[[x Total Cost of], [Acquisition]],\table[[Apportioned], [Cost]]]. [Land,...]. [Land improvements...]. [Building....]]

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