quired:Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from theopdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.ItemAccountAmounta.b.C.d.е.f.9.h.i.j.k.1.m.n.o.p.q. eBookAllocating Payments and Receipts to FIxed Asset AccountsThe following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified byan asterisk.a.Fee paid to attorney for title search$3,100b. Cost of real estate acquired as a plant site: Land326,200Building (to be demolished)31,000C.Delinquent real estate taxes on property, assumed by purchaser18,400d. Cost of tearing down and removing building acquired in (b)5,100Proceeds from sale of salvage materials from old building3,100*e.f.Special assessment paid to city for extension of water main to the property12,200g.Architect's and engineer's fees for plans and supervision44,900h.Premium on one-year insurance policy during construction4,300L.Cost of filling and grading land17,900Money borrowed to pay building contractor765,000*k. Cost of repairing windstorm damage during construction5,600I.Cost of paving parking lot to be used by customers15,500m. Cost of trees and shrubbery planted9,200n.Cost of floodlights installed on parking lot1,1000.Cost of repairing vandalism damage during construction2,500p. Proceeds from insurance company for windstorm and vandalism damage6,100*q. Payment to building contractor for new building815,600Interest incurred on bullding loan during construction38,300S.Refund of premium on insurance policy (h) canceled after 11 months358*

Land is not depreciated because land has unlimited life and depreciation is charged only to the…

Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the opdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. (tem Account Amount a. b. C. d. e. f. 9. h. 1. k. 1. m. n. O. p. 9. r.

Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the opdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. (tem Account Amount a. b. C. d. e. f. 9. h. 1. k. 1. m. n. O. p. 9. r.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.3P

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Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $2,000 b. Cost of real estate acquired as a plant site: Land 280,000                                                                  Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,000 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 3,000 * f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 13,000 j. Money borrowed to pay building…
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,000 b. Cost of real estate acquired as a plant site: Land 290,000                                                                  Building (to be demolished) 60,000 c. Delinquent real estate taxes on property, assumed by purchaser 16,000 d. Cost of razing and removing building acquired in (b) 4,000 e. Proceeds from sale of salvage materials from old building 4,000 * f. Special assessment paid to city for extension of water main to the property 28,000 g. Architect’s and engineer’s fees for plans and supervision 70,000 h. Premium on one-year insurance policy during construction 5,000 i. Cost of filling and grading land 13,000 j. Money borrowed to pay building…
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,000 b. Cost of real estate acquired as a plant site: Land 280,000                                                                  Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 16,000 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 5,000 * f. Special assessment paid to city for extension of water main to the property 28,000 g. Architect’s and engineer’s fees for plans and supervision 70,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 11,000 j. Money borrowed to pay building…
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,000 b. Cost of real estate acquired as a plant site: Land 290,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,000 d. Cost of razing and removing building acquired in (b) 4,000 e. Proceeds from sale of salvage materials from old building 3,000 * f. Special assessment paid to city for extension of water main to the property 28,000 g. Architect's and engineer's fees for plans and supervision 70,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 12,000 j. Money borrowed to pay building contractor 800,000 * k. Cost of repairing windstorm damage during construction 5,000 I. Cost of paving parking…
Payment of delinquent property taxes assumed Facetious Company incurred the following expenditures Payment of land mortgage and related Purchase price of land and an old apartment building related to the construction of a new home office: 3. What is the cost of land improvement? Cost of razing the apartment building Legal fees, including fee for title search Interest cost on specific borrowing during construction Payment of medical bills of employees accidentally 2,000,000 1,800,000 10,000 Fair value of land interest due at time of sale Grading and drainage on land site Architect fee on new building Payment to building contractor 50,000 20,000 30,000 15,000 200,000 8,000,000 300,000 injured while inspecting building construction Cost of paving driveway and parking lot Cost of trees, shrubs and other landscaping Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of building 10,000 40,000 55,000…
How much should be recorded as the purchase price of theindividual PPE items: For items 11 and 12, identify the amount to be included as Buildingassuming the asset was purchased 11. Fence and landscaping – P500,000 12. Payments to tenants to induce them to vacate the building –P600,000
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,200 b. Cost of real estate acquired as a plant site: Land 340,700 Building (to be demolished) 32,400 c. Delinquent real estate taxes on property, assumed by purchaser 19,200 d. Cost of tearing down and removing building acquired in (b) 5,400 e. Proceeds from sale of salvage materials from old building 3,200* f. Special assessment paid to city for extension of water main to the property 12,800 g. Architect’s and engineer’s fees for plans and supervision 46,800 h. Premium on one-year insurance policy during construction 4,500 i. Cost of filling and grading land 18,700 j. Money borrowed to pay building contractor 798,900* k. Cost of repairing windstorm damage during…
Property Details Purchase Price, Allocation & Classification Total Purchase Price - assume no mortgage loan (purchased and placed in service 9/1/Year 1) Building Allocation Land Allocation Depr Classification Capital Additions / Improvements #1 Capital Addition - in service 3/1/Year 2 #2 Capital Addition - in service 6/1/Year 3 Property Sale Sale Price of Property on 10/31/Year 5 Year 5 Estimated NOI Capitalization Rate Attorney Fee for Sale Marginal Tax Rate Capital Gains Tax Rate Mortgage Balance on 10/31/Year 5 Broker Fee for Sale $ 750,000 Commercial 70% 30% 50,000 $ 25,000 10/31/Year 5 $ 137,500 11% 550,000 $ 4% 3% 22% 15% 1. What is the Before Tax Sale Proceeds from the sale of the Property in Year 5? 2. What is the Adjusted Basis for the sale of the Property in Year 5? 3. What is the Gain or (Loss) for the sale of the Property in Year 5? 4. What is the Tax Expense for the sale of the Property in Year 5? 5. What is the After Tax Cash Flow from the sale of the Property in Year 5?
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk next to the item letter. a. Fee paid to attorney for title search $ 2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Cost of real estate acquired as a plant site: Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of razing and removing building acquired in B 5,000 e.* Proceeds from sale of salvage materials from old building 4,000 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 i. Cost of filling and grading land 12,000 j.* Money borrowed to pay building contractor 900,000 k. Cost of repairing windstorm damage during…
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk next to the item letter. a. Fee paid to attorney for title search $ 2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Cost of real estate acquired as a plant site: Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of razing and removing building acquired in B 5,000 e.* Proceeds from sale of salvage materials from old building 4,000 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 i. Cost of filling and grading land 12,000 j.* Money borrowed to pay building contractor 900,000 k. Cost of repairing windstorm damage during…
Grover Inc. wishes to use the revaluation model for this property: Building Gross Value Building Accumulated Depreciation Net carrying value The fair value for the property is $100,000. What amount would be booked to the "accumulated depreciation" account if Grover chooses to use the proportional method to record the revaluation? OA. $20,000 credit B. $10,000 credit O C. SO Before Revaluation $120,000 40,000 80,000 D. $10,000 debit
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