A restaurant chain purchases a two-acre tract of land and an existing building for $500,000. The company plans to remove the existing building and construct a new restaurant on the site. In addition to the purchase price, the company pays a sales commission of $30,000 to the real estate agent and title insurance of $3,000. They also pay $8,000 in property tax, which includes $6,000 of back taxes and $2,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. The chain is able to sell salvaged materials from the building for $5,000 and pays an additional $6,000 to level the land. Required: What is the cost of land to be capitalized (please show the itemized amounts and total)?
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- Wermer's Fish House purchases a tract of land and an existing building for $870,000. The company plans to remove the old bullding and construct a new restaurant on the site. In addition to the purchase price, Werner pays closing costs, including title insurance of $1700. The company also pays $11,400 in property taxes, which includes $7700 of back taxes (unpaid taxes from previous years) paid by Werner on behalf of the seller and $3700 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $43,500 to tear down the old building and remove it from the site. Werner is able to sell salvaged materials from the old building for $6,600 and pays an additional $11800 to level the land. Required: Determine the amount Werner's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) Total cost of the landJoy's House of Cheese (stocks Cougar Cheese) purchases a tract of land and an existing building for $940,000. The company plans to remove the old building and construct a new building on the site in a few months. In addition to the purchase price, Joy's pays closing costs, including title insurance of $2,400. The company also pays $12,800 in property taxes, which includes $8,400 of back taxes (unpaid taxes from previous years) paid by Joy's on behalf of the seller and $4,400 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $47,000 to tear down the old building and remove it from the site. Joy is able to sell salvaged materials from the old building for $3,800 and pays an additional $10,400 to level the land to make it ready for use. Required: Determine the amount Joy's should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) Total cost of the land $1) McCoy's Fish House purchases a tract of land and an existing building for $1,000,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $3,000. The company also pays $14,000 in property taxes, which includes $9,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $5,000 and pays an additional $11,000 to level the land. 1)Determine the amount McCoy’s Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000…
- McCoy’s Fish House purchases a tract of land and an existing building for $1,000,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $3,000. The company also pays $14,000 in property taxes, which includes $9,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $5,000 and pays an additional $11,000 to level the land.Required: Determine the amount McCoy’s Fish House should record as the cost of the land.McCoy's Fish House purchases a tract of land and an existing building for $880,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $1,800. The company also pays $11,600 in property taxes, which includes $7,800 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $3,800 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $44,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $6,800 and pays an additional $11,900 to level the land. Required: Determine the amount McCoy's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) Total cost of the landWhole Grain Bakery purchases an industrial bread machine for $30,000. In addition to the purchase price, the company makes the following expenditures: freight, $2,000; installation, $4,000; testing, $1,500; and property tax on the machine for the first year, $600. What is the initial cost of the bread machine?
- 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• UPS purchased a six-acre tract of land in Columbia, SC and an existing building for $500,000. The company plans to remove the old building and construct a distribution hub and a small office building on the site. In addition to the purchase price, the company made the following expenditures at closing of the purchase: Title insurance $ 3,000 Commissions 16,000 Property taxes *6,000 • * The $6,000 in property taxes included $2,000 of delinquent taxes paid by UPS on behalf of the seller and $4,000 attributable to the portion of the current fiscal year after the purchase date. Shortly after closing, the company paid a contractor $25,000 to tear down the old building and remove it from the site. An additional $5,000 was paid to regrade the land. What amount should be capitalized?← Milloy Furniture purchased land, paying $75,000 cash and signing a $250,000 note payable. In addition, Milloy paid delinquent property tax of $2,000, title insurance costing $4,000, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $750,000. It also paid $52,000 for a fence around the property, $17,000 for a sign near the entrance, and $7,000 for special lighting of the grounds. Read the requirements. Requirement 1. Determine the cost of the land, fand improvements, and building. The cost of the land is $ 336,000 The total cost of the land improvements is The cost of the building is S 76,000
- Mr. Pans owns and operates several retail auto parts and accessories outlets. Management is now considering the possibility of terminating the operation of the Accessories Store and leasing the facilities to another retailer. The monthly results of the Accessories Store operations are as follows: Sales P940,000 Operating expenses directly identifiable with the outlet: Cost of goods sold, etc P890,000 Depreciation 80,000 If operation of Accessories Store is terminated, Mr. Pans can rent-out the facilities for P60,000 a month to a non-competing business. Determine whether the company should continue operations or terminate the Accessories Store and rent-out the facilities. How much is the…Lavallee Furniture purchased land, paying $75.000 cash and signing a $340,000 note payable. In addition, Lavallee paid delinquent property tax of $2,000, title insurance costing $4,500, and $3,000 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 $48,000 for a fence around the property, $16,000 for a sign near the entrance, and $6,000 for special lighting of the grounds. Read the requirements Requirement 1. Determine the cost of the land, land improvements, and building. O Requirements The cost of the land is 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Lavallee depreciate? Print DoneMr. Pans owns and operates several retail auto parts and accessories outlets. Management is now considering the possibility of terminating the operation of the Accessories Store and leasing the facilities to another retailer. The monthly results of the Accessories Store operations are as follows: Sales P940,000 Operating expenses directly identifiable with the outlet: Cost of goods sold, etc P890,000 Depreciation 80,000 If operation of Accessories Store is terminated, Mr.Pans can rent-out the facilities for P60,000 a month to a non-competing business. Determine whether the company should continue operations or terminate the Accessories Store and rent-out the facilities. How much is the advantage of better option? 1. Continue the Accessories Store - advantage of P 50,000 2. Terminate operation of Accessories Store - advantage of P50,000 3. Continue the Accessories Store - advantage of P10,000 4. Terminate operation of Accessories Store - advantage of P10,000