Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2DQ
To determine
Name the account head for listing the vacant lot in the balance sheet by Company B.
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Students have asked these similar questions
Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a
gain. The lot is not intended to be used in Bullwinkle's business operations. Where should
such real estate be listed on the balance sheet?
A. blue ocean associate is looking to generate income from extra cash. The company purchased an old building, will be restored and sold at a profit. how should blue ocean classify the building on its book?
B. And if blue ocean had bought a lanf for the site of a new office, what depreciation method would you, as its newly hired accountant, suggest it uses for the land?
Smatter Corporation purchased land for a new building. Which of the following costs would not be included
in the cost of the land?
a. Purchase price of the land
b. Cost of demolishing an old garage located on the land
c. Cost of a new parking lot constructed on the lane
d. Brokerage commission paid to the real estate agent who handled the land transaction
Chapter 10 Solutions
Financial Accounting
Ch. 10 - ONeil Office Supplies has a fleet of automobiles...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Keyser Company purchased a machine that has a...Ch. 10 - Is it necessary for a business to use the same...Ch. 10 - a. Under what conditions is the use of the...Ch. 10 - Prob. 7DQCh. 10 - Immediately after a used truck is acquired, a new...Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment acquired at the beginning of the year at...Ch. 10 - A truck acquired at a cost of 69,000 has an...Ch. 10 - A tractor acquired at a cost of 420,000 has an...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment with a cost of 180,000 has an estimated...Ch. 10 - A truck with a cost of 82,000 has an estimated...Ch. 10 - On February 14, Garcia Associates Co. paid 2,300...Ch. 10 - On August 7, Green River Inflatables Co. paid...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Prob. 7PEACh. 10 - Prob. 7PEBCh. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - Prob. 9PEACh. 10 - Prob. 9PEBCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Tri-City Ironworks Co. reported 44,500,000 for...Ch. 10 - Convert each of the following estimates of useful...Ch. 10 - A refrigerator used by a wholesale warehouse has a...Ch. 10 - A diesel-powered tractor with a cost of 90,000 and...Ch. 10 - Prior to adjustment at the end of the year, the...Ch. 10 - A Kubota tractor acquired on January 8 at a cost...Ch. 10 - A storage tank acquired at the beginning of the...Ch. 10 - Equipment acquired at a cost of 105,000 has an...Ch. 10 - A building with a cost of 1,200,000 has an...Ch. 10 - US Freight Lines Co. incurred the following costs...Ch. 10 - Jackie Fox owns and operates Platinum Transport...Ch. 10 - Quality Move Company made the following...Ch. 10 - Willow Creek Company purchased and installed...Ch. 10 - Equipment acquired on January 8 at a cost of...Ch. 10 - Equipment acquired on January 6 at a cost of...Ch. 10 - Prob. 19ECh. 10 - Kleen Company acquired patent rights on January 10...Ch. 10 - Prob. 21ECh. 10 - List the errors you find in the following partial...Ch. 10 - Amazon.com, Inc. is the worlds leading Internet...Ch. 10 - Verizon Communications Inc. is a major...Ch. 10 - FedEx Corporation and United Parcel Service, Inc....Ch. 10 - The following table shows the sales and average...Ch. 10 - Prob. 27ECh. 10 - Prob. 28ECh. 10 - Prob. 29ECh. 10 - On October 1, Bentley Delivery Services acquired a...Ch. 10 - The following payments and receipts are related to...Ch. 10 - Dexter Industries purchased packaging equipment on...Ch. 10 - Perdue Company purchased equipment on April 1 for...Ch. 10 - New lithographic equipment, acquired at a cost of...Ch. 10 - The following transactions and adjusting entries...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Waylander Coatings Company purchased waterproofing...Ch. 10 - Layton Company purchased tool sharpening equipment...Ch. 10 - New tire retreading equipment, acquired at a cost...Ch. 10 - Prob. 5PBCh. 10 - Prob. 6PBCh. 10 - Prob. 1CPCh. 10 - Prob. 2CPCh. 10 - Godwin Co. owns three delivery trucks. Details for...Ch. 10 - The following is an excerpt from a conversation...
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Similar questions
- 1. Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Bullwinkle's business operations. Where should such real estate be listed on the balance sheet? 2. Distinguish between the accounting for capital expenditures and revenue expenditures. 3. Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,850. Is this a capital expenditure or a revenue expenditure? 4. Keyser Company purchased a machine that has a manufacturer's suggested life of 20 years. The company plans to use the machine on a special project that will last 12 years. At the completion of the project, the machine will be sold. Over how many years should the machine be depreciated? 5. Is it necessary for a business to use the same method of computing depreciation for all classes of its depreciable assets and for financial statement purposes and in determining income taxes?arrow_forwardSmatter Corporation purchased land for a new building. Which of the following costswould not be included in the cost of the land?a. Purchase price of the landb. Cost of demolishing an old garage located on the landc. Cost of a new parking lot constructed on the landd. Brokerage commission paid to the real estate agent who handled the land transactionarrow_forwardPlease no coping from another site. Show the necessary workings on how you derived your answers. Answer all questions a to d.arrow_forward
- Accounting When you dispose of a property and end up with a gain or a loss, it may be treated in one of 2 ways. What are they? When you dispose of personal-use property, you usually do not have a capital gain. Why not? To calculate any capital gain or loss, you need to know the following 3 amounts: the proceeds of disposition the adjusted cost base (ACB) the outlays and expenses incurred to sell your property Using these three amounts, what is the formula to calculate your capital gain or loss? 4. Capital Gains are reported on Schedule 3. What line does the sale of Personal Use Property go on?arrow_forwardThe Jackston Company is to be liquidated as a result of bankruptcy. Until the liquidation occurs, on what basis are its assets reported?a. Present value calculated using an appropriate effective rate.b. Net realizable value.c. Historical cost.d. Book value.arrow_forwardDuring the current year, Alanna Co. had the following transactions pertaining to its new office building. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. What should Alanna Co. record on its books for the building?arrow_forward
- Lynch Corporation changes from the sum-of-the-years’-digits method of depreciation for existing assets to the straight-line method. How should the change be reported? Explain.arrow_forwardWhich of the following would be considered a capital expenditure? (A 22) O Making a payment on accounts payable O Paying accumulated income taxes O Paying shipping insurance on new equipment Retiring a bond payable taken out for construction Which of the following costs CANNOT be capitalized as part of land? Price paid to purchase the land. Clearing old buildings and other obstructions Obligations assumed when buying the land Overhead costs for construction projects on the landarrow_forwardEton Corporation purchased land in 1998 for $190,000. In 2014, it purchased a nearly identical parcel of land for $430,000. In its 2014 balance sheet, Eton valued these two parcels of land at a combined value of $860,000. Reporting the land in this manner violated the: Select one: a. Principle of the business entity. b. Going-concern assumption. c. Cost principle. d. Objectivity principle.arrow_forward
- During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land Legal fees for contracts to purchase land Architech fees Demolition of the old building on site Sale of scrap from old building Construction cost of new building A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $130,000 5,000 20,000 8,000 7,000 610,000 B. What should Alanna Co. record on its books for the building?arrow_forwardWhen an item of property, plant and equipment is acquired by issuing equity shares, which of the following is the best basis for establishing the historical cost of the acquired asset? a. Historical cost of a similar asset acquired in another transaction by the buyer b. Historical cost of the asset is zero since noncash is paid in the acquisition c. Fair value of the asset received or the fair value of the shares issued, whichever is more readily determinable d. Historical cost of the asset to the sellerarrow_forwardraxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted.arrow_forward
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