Cost of Land: The cost of land includes the following costs: Purchase price of land Attorney fees Real estate agent commission Title Recording fees Additional expenses : Clearing Filling and leveling of land Removing of old buildings To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

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Answer 1

Question

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

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The following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 111,500 Allowance for doubtful accounts 11,200 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $252,000. Sold merchandise to Abbey Corp; invoice amount, $36,000. Sold merchandise to Brown Company; invoice amount, $47,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $50,000. Collected $113,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $42,400. Cavendish paid its account in full after the…

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Answer 2

Question

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

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Answer 3

Question

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

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Answer 4

Question

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

Answer 6

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

Answer 7

Chapter 9, Problem 9.2EX

(A)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

Answer 8

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

Answer 9

(B)

To determine

To explain: whether such costs debited to land account should be depreciated.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Distinguish between the accounting for capital...Ch. 9 - Immediately after a used truck is acquired, a new...Ch. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Is it necessary for a business to use the same...Ch. 9 - A. Under what conditions is the use of an...Ch. 9 - For some of the fixed assets of a business, the...Ch. 9 - Prob. 10DQ

Solution Summary: The author explains that the cost of acquiring the fixed assets refers to the purchase price and other additional costs that are spent to place the asset in service and make it ready for its intended use.

To explain: whether such costs debited to land account should be depreciated.

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Chapter 9 Solutions