On January 1, Duane Company purchases land at a cost of $125,000. Duane incurs costs of $2,000 for the closing fees and surveys. Duane also spent $7,500 on clearing costs to prepare the land for use. What is the cost of land to be recorded by Duane?

On January 1, Duane Company purchases land at a cost of $125,000. Duane incurs costs of $2,000 for the closing fees and surveys. Duane also spent $7,500 on clearing costs to prepare the land for use. What is the cost of land to be recorded by Duane?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: At the beginning of the current year, CakeCompany purchased for P5,400,000, including appraiser's…

A: When a group of assets is acquired for a limp sum price, the total costs hould be allocated to the…

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $29,000 and…

A: Cost of land = Cash payment + Notes value + Legal fee + Taxes + Fee to remove building - Salvage…

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: A building with an appraisal value of $132,331 is made available at an offer price of $151,729. The…

A: Note payable is a liability posted to the balance sheet of the company that has to be repaid within…

Q: Al Madinah Co. purchases land for RO 90,000 cash. The company paid RO 11,600 in property taxes. The…

A: Calculate the cost of land:

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: 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: 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: Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid…

A: The procedure of entering business transactions for the first time in the books of accounts is known…

Q: E9-2 (Algo) Part 2

A: Depreciation is an accounting method used to allocate the cost of a tangible asset (such as…

Q: Shannon Miller, Inc. purchased land, paying $90,000 cash as a down payment and signing a $120,000…

A: Land and building are the non-current or long term assets which are shown in the balance sheet.…

Q: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new…

A: To determine the cost of the land to be reported on the balance sheet, we need to add all the costs…

Q: Rodriguez Company pays $336,960 for real estate with land, land improvements, and a building. Land…

A: Introduction:- Property, plant ,equipment classified as fixed assets. It is reported under balance…

Q: the following expeditures were incurred by Obermeyer company in purchasing land : cash price…

Q: These expenditures were incurred by Crane Company in purchasing land: cash price $55,240, assumed…

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

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

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the general journal entry for this transaction: "Paid cash to purchase a building and land…

A: In case of basket purchase, the total cost of the items purchased is to be apportioned to each item…

Q: A building with an appraisal value of $133,629 is made available at an offer price of $158,926. The…

A: The cost basis recorded in the buyer's accounting records to recognize this purchase is $111820…

Q: Ion Co. purchased land for $190,000. lon also paid $5,000 in real estate commissions, $1,000 in…

A: Cost of asset is the amount paid for an asset and for expenses incurred in putting the asset in use.…

Q: Charlie Company acquired an adjacent plot to construct a new warehouse paying $301000 in cash.…

A: 1.Answer Cash paid $3,01,000 Add: Attorneys fee $ 1,500 Delinquent taxes $…

Q: Brackett Corporation had the following transactions in its land account: • January 1, 2017 -…

A: As per the historical cost principle, all assets in the organisation should be recorded at their…

Q: Diego Company paid $194,000 cash to acquire a group of items consisting of land appraised at $57,000…

A: The objective of the question is to allocate the total cost paid by Diego Company to acquire a group…

Q: On May 7, Carpet Barn Company offered to pay $80,850 for land that had a selling price of $90,000.…

A: A historical cost is a measure of value used in accounting in which the value of an asset on the…

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

A: The objective of the question is to allocate the total purchase cost between the land and the…

Q: Ivanhoe Company purchased land, a building, and equipment on January 2, 2021, for $940,000. The…

A: Total estimated value of land, building and equipment = $388000 +$446200+$135800 =$970,000

Q: List the items and amounts that should be included in the Land account.

A: Land is a fixed asset and can be used to generate cash. Land is not depreciated except the quarries…

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: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: The cost concept of accounting states that all acquisitions of items (eg, assets or items needed for…

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

A: The various assets can be acquired by the business at a lump sum price. The assets acquired at lump…

Q: Roller Inc. purchased a plant and the land on which the plant was located for a total of $300,000…

A: Fair Market Value: It refers to the price at which a product is expected to be sold in the open…

Q: On January 1 Coopers Industries bought a parcel of land for use in its operations by paying the…

A: A phrase used in accounting for assets and property that might not be easily turned into cash is…

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: Rossy Investigations purchased land, paying $97,000 cash plus a $250,000 note payable. In Addition,…

A: Cost of the land include purchase price of the land, any related expenses such as closing costs,…

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

A: The reported cost of building is based on the total cost of purchase and the total appraised value.…

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: Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000…

A: A special revenue fund is defined as a type of fund set up for the purpose of using the money for…

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: hite purchased land with a current market value of $144,000, a building with a market value of…

A: Total market value of land, building nd equipment = $144, 000 + 18000 + 18000 =$180, 000

Q: Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70%…

A: Depreciation expense: Depreciation is a method of reducing the capitalized cost of long-lived…

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

A: The lump sum paid for acquisition of different assets can be allocated to different assets on the…

Q: Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $ 1,650, property taxes…

A: To calculate the capitalized cost of the land for Amos, Inc., we need to consider the initial…

Q: Rodriguez Company pays $347,490 for real estate with land, land improvements, and a building. Land…

A: " Total cost" describes the entire quantum of plutocrat spent by an association or existent to…

Question

100%

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

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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

Required information (The following information applies to the questions displayed below.) Rodriguez Company pays $335,000 for real estate plus $17,755 in closing costs. The real estate consists of land appraised at $196,000; land improvements appraised at $68,600; and a building appraised at $225,400. Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the costs of lump-sum purchase.
On November 10 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building. a) Assume the building was purchased and placed in service on March 3 instead of November 10. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? b) Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?c) What would be the depreciation for 2022, 2023, and 2024 if the property were nonresidential property purchased and placed in service November 10, 2005 (assume the same original basis)?
A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land? Muitiple Choice $87,500. $85.200. $86,200.
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
Everett Company purchased land and a modern office building on March 1, 20-1 for a combined price of $600,000. $400,000 was paid in cash with the remainder owing on a 5% note payable. The land had a cost of $350,000 and the building had a net book value of $100,000 on the seller's books. The land and building had fair market values of $390,000 and $210,000, respectively on March 1. Everett made the following entry at acquisition?
On May 7, Carpet Barn Company offered to pay $72,520 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $86,190. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $133,610 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?$fill in the blank 1
K- Belvidere Furniture purchased land, paying $95,000 cash and signing a $280,000 note payable. In addition, Belvidere paid delinquent property tax of $5,000, title insurance costing $1,500, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $51,000 for a fence around the property, $13,000 for a sign near the entrance, and $3,000 for special lighting of the grounds. Read the requirements. Requirement 1. Determine the cost of the land, land improvements, and building. The cost of the land is $ 389,500 The total cost of the land improvements is Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Belvidere depreciate? Print Done - X
Following are descriptions of land purchases in four separate cases. Requireda. Determine the cost used for recording the land acquired in each case.b. Record the journal entry for each case on the date of the land’s acquisition. Note: Round your answers to the nearest whole dollar. Case One 1. At the midpoint of the current year, a $32,000 check is given for land, and the buyer assumes the liability for unpaid taxes in arrears of $800 at the end of last year and those assessed for the current year of $720. a. Determine the cost used for recording the land acquired.Cost of land $Answer b. Record the journal entry on the date of the Account NameDr.Cr. Answer Answer Answer To record land acquisition.
Rocket Ltd, purchased a building from Moon Ltd. for $ 6.500.000. The payment was made as to 25% by accepting a bill of exchange, and for the balance debentures are allotted at 25% premium. Journalise in the books of purchaser.
Rodriguez Company pays $373, 815 for real estate with land, land improvements, and a building. Land is appraised at $180,000; land improvements are appraised at $40,000; and the building is appraised at $ 180,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $200,000; land improvements are appraised at $75,000; and the building is appraised at $ 225,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land improvements are appraised at $79,500; and the building is appraised at $185,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. Land Land improvements Building Totals Appraised Value $ $ 265,000 79,500 185,500 530,000 Percent of Total x Total Cost of Appraised Value Acquisition 50% 15% 35% 100%