Identify the value of building.

Question

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Answer 1

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

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Students have asked these similar questions

A building with an appraisal value of $125,601 is made available at an offer price of $153,140. The purchaser acquires the property for $31,231 in cash, a 90-day note payable for $23,994, and a mortgage amounting to $57,725. The cost of the building to be reported on the balance sheet is a.$121,909 b.$125,601 c.$112,950 d.$153,140

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:

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

Answer 2

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

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Answer 3

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

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Answer 4

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 6

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 7

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 12

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Identify the value of building.

Identify the value of building.

Answer to Problem 1MCQ

Explanation of Solution

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Chapter 1 Solutions