What is the maximum price you would be willing to pay for the business? If an investor group purchased the restaurant near the campus for $255, 867 and the fair value of the assets they acquired was $202,000, identify the account along with its balance, that is used to record the additional amount paid over the fair value of the assets.
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What is the maximum price you would be willing to pay for the business? If an investor group purchased the restaurant near the campus for $255, 867 and the fair value of the assets they acquired was $202,000, identify the account along with its balance, that is used to record the additional amount paid over the fair value of the assets.
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- Finley Co. is looking for a new office location and sees a building with a fair value of $400,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $80,000. Finley offers to buy both the building and the equipment for $450,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment.Finley Company is looking for a new office location and sees a building with a fair value of $740,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $114,000. Finley offers to buy both the building and the equipment for $790,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round intermediate calculations.)A company purchases a new building for $500,000. They pay $100,000 in cash and finance the remainder with a mortgage. The land the building sits on is appraised at $150,000. Additionally, the company incurs closing costs of $ 10,000, which are paid in cash. Prepare the journal entries to record the acqusisition and allocate the cost between the land and the building. If you give Al or Chatgpt answers i will give 20 downvotes
- A company is considering purchasing a parcel of land that was originally acquired by the seller for $85,000. While the land is currently offered for sale at $150,000, it is considered by the purchaser as easily being worth $140,000, and is finally purchased for $137,000, the land should be recorded in the purchaser's books at:On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,756Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $232,000. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?
- Best Beauty Salon purchased land and a building for $8,000,000 on 1/1. The estimated fair market values of the land and building are $2,000,000 and $8,000,000, respectively. What amount should be recorded in the building account on 1/1? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 f5 E3 f6 f7 f8 f9 f10 f11 O/京 & 4. 5 7 8 Y U 图 因 R 图 %24The company has recieved a donation of land from a rich local philanhropist. the land originally cost the philanhropist $48,000. on the date of the donation, it had a market value of $111,000. Make the journal entry necessary on the book of the company to record the receipt of the landA vacant lot is acquired for $83,000 cash. Later the owner borrows $52,000 against the land. Three years later, the lot is then sold for $127,000 in cash. After receiving the $127,000 sales price in cash, the seller pay off the loan of the $52,000 owed. What is the effect of the $52,000 payment of the loan on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? Assets increase $127,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 The payment of the loan has no net effect on any of the categories Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity is unchanged
- A building with an appraisal value of $125,601 is made available at an offer price of $153,140. The purchaser acquires the property for $31,231 in cash, a 90-day note payable for $23,994, and a mortgage amounting to $57,725. The cost of the building to be reported on the balance sheet is a.$121,909 b.$125,601 c.$112,950 d.$153,140Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?Reynolds Construction (RC) needs a piece of equipment that costs $200. RC can either lease the equipment or borrow $200 from a local bank and buy the equipment. Reynolds's balance sheet prior to the acquisition of the equipment is as follows: Current assets: $300 Debt: $400 Net Fixed Assets: 500 Equity: 400 Total assets: 800 Total claims: 800 a. (1) What is RC's current debt ratio? (2) What would be the company's debt ratio if it purchased the equipment? (3) What would be the debt ratio if the equipment were leased and the lease was not capitalized? (4) What would be the debt ratio if the equipment were leased and the lease were capitlaized? Assume that the present value of the lease payments is equal to the cost of the equipment. b. Would the company's financial risk be different under the leasing and purchasing alternatives?