On May 7, Carpet Barn Company offered to pay $80,850 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,300. 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 $126,060 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

On May 7, Carpet Barn Company offered to pay $80,850 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,300. 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 $126,060 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 85P

See similar textbooks

Similar questions

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
On February 3, Gallatin Repair Service extended an offer of $152,000 for land that had been priced for sale at $173,000. On February 28, Gallatin Repair Service accepted the seller's counteroffer of $165,000. On October 23, the land was assessed at a value of $248,000 for property tax purposes. On January 15 of the next year, Gallatin Repair Service was offered $264,000 for the land by a national retail chain. At what value should the land be recorded in Gallatin Repair Service's records?
On February 3, Boulder Repair Service extended an offer of $566,000 for land that had been priced for sale at $629,000. On February 28, Boulder Repair Service accepted the seller’s counteroffer of $597,000. On October 23, the land was assessed at a value of $613,000 for property tax purposes. On January 15 of the next year, Boulder Repair Service was offered $708,000 for the land by a national retail chain. At what value should the land be recorded in Boulder Repair Service’s records?
On February 3, McCade Repair Service extended an offer of $63,000 for land that had been priced for sale at $72,000. On February 28, McCade Repair Service accepted the seller's counteroffer of $69,000. On October 23, the land was assessed at a value of $104,000 for property tax purposes. On January 15 of the next year, McCade Repair Service was offered $110,000 for the land by a national retail chain. At what value should the land be recorded in McCade Repair Service's records?
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $219,879. The Focus Company initially offered to buy the land for $177,067. The companies settled on a purchase price of $209,440. On the same day, another piece of land on the same block sold for $233,966. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? Oa. $211,966 Ob. $177,067 Oc. $209,440 Od. $219,879
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $89,426. The Focus Company initially offered to buy the land for $109,576. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,453. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$103,453 b.$212,000 c.$109,576 d.$89,426
On June 25, Obermayer Repair Service extended an offer of $135,000 for land that had been priced for sale at $154,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $147,000. On October 1, the land was assessed at a value of $221,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $235,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $219,000. The appraised fair market value of the warehouse was $127,500, and the appraised value of the land was $185,750. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse was $102,500, and the appraised value of the land was $219,000?
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $168,000. The appraised fair market value of the warehouse was $94,500, and the appraised value of the land was $138,000. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is Bob’s basis in the warehouse and in the land? b. What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse was $69,500, and the appraised value of the land was $168,000?
On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain on the sale. PTD agreed to accept one payment of P35,000 on August 15 and a second payment of P35,000 on December 15. PTD had a calendar year-end. What amount of gain was reported during the second, third, and fourth quarters of the year from this sale?
On June 25, Obermayer Repair Service extended an offer of $90,000 for land that had been priced for sale at $103,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $98,000. On October 1, the land was assessed at a value of $147,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $157,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$fill in the blank
On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain on the sale. PTD agreed to accept one payment of P35,000 on August 15 and a second payment of P35,000 on December 15. PTD had a calendar year-end. What amount of gain was reported during the second, third, and fourth quarters of the year from this sale?