WinCo Foods purchased land and a building for a total price of $2,080,000. Individually, the land was appraised at $336,000 and the building at 1,904,000. How much should be recorded as the acquisition cost of each asset? Select one: a. Land $320,000; Building $1,760,000 b. Land $312,000; Building $1,768,000 c. Land $336,000; Building $1,904,000 d. Land $336,000; Building $1,744,000 e. Land $1,040,000; Building $1,040,000

WinCo Foods purchased land and a building for a total price of $2,080,000. Individually, the land was appraised at $336,000 and the building at 1,904,000. How much should be recorded as the acquisition cost of each asset? Select one: a. Land $320,000; Building $1,760,000 b. Land $312,000; Building $1,768,000 c. Land $336,000; Building $1,904,000 d. Land $336,000; Building $1,744,000 e. Land $1,040,000; Building $1,040,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

See similar textbooks

Related questions

Q: A company acquired an office building, land, and equipment in a single basket purchase. The fair…

A: Estimated Fair value Land $21,60,000.00 Building $5,40,000.00 Equipment…

Q: Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the…

A: Total fir value = land's fair value + building’s fair value + equipment’s fair value = $75,000 +…

Q: Fresh Veggies, Incorporated (FVI), purchases land and a warehouse for $490,000. In addition to the…

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

Q: Excellent Company purchased a plant, including land, building and machinery, for P 110,000. These…

A: Total appraised value = appraised value of land + appraised value building + appraised value…

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: Purch

A: Answer : Apportionment of cost of land and Building : Land and building cost paid = $183,500…

Q: A group of assets including land, a building, and equipment were purchased for $1,000,000. The…

A: The purchase price allocation for each asset can be calculated based on its relative fair market…

Q: Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the…

A: The question is related to Property, Plant and Equipment. The details of lump sum group purchase is…

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: Zeidler Company bought a building and the land on which the building is located for a total cash…

A: Business organizations are required to charge the depreciation expense so that in the books of…

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

A: Initial value of land and buildings shall be allocated based on their proportion of fair values.

Q: Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised…

A: Plant assets: Plant assets refer to the fixed assets, having a useful life of more than a year that…

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: SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair…

A: Introduction: - The total purchase cost for all three assets is obtained using the proportion method…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Given, Amount paid for acquiring and = $200,000 Amount paid for an appraisal = $20,000 Land cost =…

Q: The Zylo Corp. made a basket purchase of Land, Building, and Equipment for $6250000. The…

A: The lump-sum amount is the total amount paid to acquire the different assets. The costs can be…

Q: a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is…

A: Acquisition basis of a property: > The acquisition basis of a property means the total cost…

Q: homework i Carver Incorporated purchased a building and the land on which the building is situated…

A: A basket purchase involves acquiring multiple assets together as a single package. Such purchases…

Q: Purchased for P5,500,000, including appraiser fee of P100,000´a warehouse building and the land on…

A: Journal entry: A journal entry is a record of the business transactions within the accounting books…

Q: ABC purchased a plant, including land, building and machinery, for P110,000. These items were…

A: Total appraisal value of assets = Land + building + machinery = P30000+45000+75000 = P150,000

Q: Advanced Automotive pays $270,000 for a group purchase of la acquisition, the land has a current…

A: The question is related to Property, Plant and Equipment. The details of lump sum group purchase is…

Q: Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of…

A: 1. Formulas:

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

A: The accounting term is lump sum purchase. Lump Sum Purchase: When the assets are purchased or…

Q: Simons Company purchased land to build a new factory. The following expenditures were made in…

A: Plant asset:

Q: SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair…

A: In combined purchases, all the different assets are purchase at a single price. So we have to divide…

Question

WinCo Foods purchased land and a building for a total price of $2,080,000. Individually, the land was appraised at $336,000 and the building at 1,904,000.

How much should be recorded as the acquisition cost of each asset?

Select one:

a. Land $320,000; Building $1,760,000

b. Land $312,000; Building $1,768,000

c. Land $336,000; Building $1,904,000

d. Land $336,000; Building $1,744,000

e. Land $1,040,000; Building $1,040,000

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: Explanation of Acquisition Cost Allocation on Appraised Value

VIEW

Step 2: Calculation of Acquisition Cost

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

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

Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys 7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled 2,500. Building permits totaled 1,200. Compute the acquisition cost of the land.
provide the answer
SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair values were $2,400,000, $1,200,000, and $400,000 for the building, land, and equipment, respectively. The company recorded the building for $2,160,000. What was the total purchase cost for all three assets? Select one: a. $3,400,000 b. $3,600,000 c. $3,200,000 d. $3,800,000 e. $4,000,000
Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places. A. $171,000 B. $132,000 C. $316,667 D. $114,000
Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised for $84,000 and the building appraised for $336,000. How much of the purchaseprice should be allocated to the cost of the land?a. $75,000b. $80,000c. $84,000d. $400,000
The Zylo Corp. made a basket purchase of Land, Building, and Equipment for $6250000. The appraised value of each asset was listed as follows. Land at $1500000, Building at $3900000, and equipment at $1200000. Required: Calculate the cost assigned to each asset.
Excellent Company purchased a plant, including land, building and machinery, for P 110,000. These items were carried on the bools of the seller as follows: land, P 30,000; building, P 60,000; and machinery, P 30,000. Immediately after the purchase, the assets were appraised at the following values: land, P 30,000; building, P 45,000; and machinery, P 75,000. QUESTION: What cost should Excellent record for the land, building and machinery, respectively? O P 36,666; P 36,667; P 36,667 O P 22,000; P 33,000; P 55,000 O P 27,500; P 55,000; P 27,500 O P 24,000; P 30,000; P 66,000
Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the acquisition, Nathan Jacob's $15,000 to have the property appraised. The following values were determined from the appraisal: land, $125,000; building, $235,000; and equipment, $150,000. Required: 1. What cost should Nathan Jacob’s assign to the land, buildings, and equipment, respectively? 2. Provide the journal entry to record the acquisition on the books of Nathan Jacob’s.
Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the purchase price, Soccer Wholesale makes the following expenditures related to the acquisition: broker's commission, $44,400; title insurance, $2,800; and miscellaneous closing costs, $7,300. The warehouse is immediately demolished at a cost of $83,900 in anticipation of building a new warehouse. Determine the amount Soccer Wholesale should record as the cost of the land. Cost of the land
A group of assets including land, a building, and equipment were purchased for $1,000,000. The estimated market value of the assets include the following: Land 400,000, building 500,000, and equipment 300,000. Calculate the purchase price allocation for each of the assets. *Round your allocation percentage to the nearest decimal. Land 340,000 Building 420,000 Equipment 250,000 Land 400,000 Building 500,000 Equipment 300,000 Land 333,333 Building 333,333 Equipment 333,334 Land 250,000 Building 400,000 Equipment 350,000
Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.
A company acquired an office building, land, and equipment in a single basket purchase. The fair values were $2,160,000, $540,000, and $2,700,000 for the building, land, and equipment, respectively. The company recorded the building for $1,490,000. What was the total purchase cost for all three assets?