Right answer with explanation Which of the following account titles should the following expenditure be debited: Paid $7,000 ofaccrued taxes at the time the plant site was acquired?a. Land Improvementsb. Landc. Prepaid Insuranced. License Expense

Explanation of Land: Land is a tangible fixed asset that represents the cost of acquiring property…

Answered: Which of the following account titles…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1MBA

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Land improvements include: Oa. surveying fees. Ob. sales tax. Oc. freight. С. Od. outdoor lighting.
Allocating payments and receipts to fixed asset accountsThe following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. A. Fee paid to attorney for title search.............. $2,500 B. Cost of real estate acquired as a plant site: Land 285,000 C. Delonquent real estate taxes on property, assumed by purchaser...... 15,500 D. Cost of razing and removing building acquired in B......... 5,000 E. Proceeds from sale of salvage materials from old building........ 4,000* F. Special assessment paid to city for extension of water main to the property...... 29,000 G. Architect's and engineer's fees for plans and supervision........ 60,000 H. Premium on one-year insurance policy during construction..... 6,000 I. Cost of filling and grading land............. 12,000 J. Money borrowed to pay building contactor....... 900,000* K. Cost of…
Calculate the assessed value (in $) and the property tax due (in $) on the property. Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $304,000 80 $ $25.40 per $1,000 $
Exercises E9.1 (LO 1), AP Writing The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2022. Determine cost of plant acquisitions. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 2-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck.
7. Which of the following statements is true regarding capitalization of interest? A) The minimum amount of interest to be capitalized is determined by multiplying a weighted average interest rate by the amount of average accumulated expenditures on qualifying assets during the period B) Interest cost capitalized in connection with the purchase of land to be used as a building site should be debited to the land account and not to the building account. C) The amount of interest cost capitalized during the period should not exceed the actual interest cost incurred. D) When excess borrowed funds not immediately needed for construction are temporarily invested, any interest earned should be offset against interest cost incurred when determining the amount of interest cost to be capitalized.
Accumulated Depreciation appears on the... Select one: a. balance sheet in the long-term liabilities section b. income statement as an operating expense c. balance sheet in the property, plant, and equipment section d. balance sheet in the current assets section
The balance in the Accumulated Depreciatin account represents: A) The amount charged to expense in the current period B) A Contra-expense account C) A Cash fund to be used to replace plant assets D) The amount charged to depreciation expense since the acquisition of the plant asset
Current Attempt in Progress These expenditures were incurred by Cullumber Company in purchasing land: cash price $60,010, assumed accrued taxes $5,490, attorney's fees $2,260, real estate broker's commission $3,960, and clearing and grading $4,220. What is the cost of the land? The cost of the land $
Income earned from incidental operations before an asset is put to use is: deducted from the cost of the asset added to the cost of the asset immediately recognized in P/L together with related expense ignored
When writing journal entries for recording assets, what is the end result in the account: Group of answer choices Aggregate cost of the asset Cost, net of preparation costs. Proceeds paid to employees Only the net depreciable costs
What is the proper accounting treatment to record improvements to leased property for a lessee? Group of answer choices Capitalize and depreciate over the lesser of the life of the improvement or lease term. Expense in the year in which expenses are incurred. Expense in the year in which expenses are incurred and increase basis of asset. Capitalize and depreciate over the greater of the life of the improvement or lease term.
Compare the property and equipment listed in the balance sheet with the list inNote 14. What are the estimated useful lives for recording depreciation? Why is landnot listed in Note 14?

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Which of the following account titles should the following expenditure be debited: Paid $7,000 of accrued taxes at the time the plant site was acquired? a. Land Improvements b. Land c. Prepaid Insurance d. License Expense