A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the journal entry to record the purchase Prepare the journal entry to record the purchase:
Q: Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2.…
A:
Q: Robert Jones has just rendered service for a taxpayer as an expert witness in a case heard by the U.…
A: Relevant Facts Robert Jones recently assisted a taxpayer in a lawsuit before the US Tax Court as an…
Q: Activity-Based Costing: Selling and Administrative Expenses Jungle Junior Company manufactures and…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…
Q: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted…
A: Factory overhead cost is the amount of cost incurred on the making or the manufacturing of the…
Q: Beginning Inventory, June 1 Purchase, June 8 Purchase, June 19 Inventory, June 31 Units 580 265 890…
A: The FIFO states that the first purchases are to be sold first. Under this method, the inventory…
Q: BFAR Corporation has the following transactions related to treasury shares: . Purchased its own…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: In Hal's business, the "Kd" is...(circle all that apply): (a) Hal's cost of debt; (b) is the…
A: The cost of debt - which is used as Kd - is the interest rate paid by the company on the loans or…
Q: Deon is 33 years old. In 2022, he reported an AGI of $11,000, all from his job as a server at the…
A: Adjusted gross earnings (AGI) is the discernment that the Internal Revenue Service (IRS) uses to…
Q: X Inc. owns 70% of Y Inc. During 2020, X Inc. sold inventory to Y for $10,000. Half of this…
A: X Inc owns 70% of Y Inc During 2020, remaining 30% is non-controlling interest. X Inc sold inventory…
Q: Trading securities are: O reported at fair value on the balance sheet and as unrealized gains or…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Intra-Spect Mining Co. acquired mineral rights for $52,000,000. The mineral deposit is estimated at…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Question 21 Which of the following is not a technique of disclosures? Parenthetical explanation 83 8…
A: Answer:- Disclosure technique:- A procedure or methodology that an organization does when creating…
Q: $ 50,000 Common stock, $12 par, 50,000 shares authorized and outstanding 600,000 Additional…
A: Answer : Mendes' total contribution capital = Preferred stock ,Cumulative non participating…
Q: The articles of incorporation provide for the issuance of 100,000 ordinary shares capital. Assume…
A: No. of shares outstanding : No. of shares outstanding are calculated by substracting the shares…
Q: Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of…
A: Calculation of ordinary income:Ordinary income= Sales revenue + Interest income - Cost of goods sold…
Q: Hal's Ice Cream Stands $ Thousands Assets Cash and cash equivalents Accounts receivable Inventories…
A: Financial statements of the company are those statements which shows the financial position as well…
Q: You plan to invest $40,000 at the end of each of the next 25 years. If the investment account pays…
A: The table below shows the interest earned and the amount at the end of 25th year.
Q: Marie works for a company located in Pierrefonds, Québec. She earns an annual salary of $53,274.00…
A: Tax Deduction - Tax deductions, which are typically the consequence of expenses, especially those…
Q: The comparative accounts payable and long-term debt balances for a company follow. Current Year…
A: Horizontal analysis: Horizontal analysis is prepared to calculate the variance from previous year by…
Q: Suppose a $4,500 bond will pay you $325 at the end of each quarter until the face value of the bond…
A: Introduction: Issue price of the bond is calculated as under: Issue price/Fair market value of bonds…
Q: 41) Dozen Corporation is owned equally by twelve unrelated individuals. Its taxable income this year…
A: It is the tax payable by the companies with retained earnings deemed to be unreasonable and more…
Q: Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:…
A: Requirement:-a Earning per share =(Net income -prefer ence dividend)/common shares outstanding
Q: Presented below is the 2024 income statement and comparative balance sheet information for Tiger…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: Milligan's Millworks pays its employees weekly. Use the wage-bracket tables from Appendix C to…
A: The wages paid to employees are subject to withholding taxes. There exist two methods to determine…
Q: Problem 14-14A (Algo) The direct versus the indirect method of determining cash flow from operating…
A: Cash flow statement means the statement which shows the cash inflow and outflow during the specified…
Q: Nielson Corp. sells its product for $6.600 per unit. Variable cost per unit are: manufacturing,…
A: Answer Correct option is = 2nd option $4800 Explanation: Cogs = Variable Cost +…
Q: These documents do not need to be disclosed Question 9 options: A) documents that are not notarized…
A: Disclosure of documents Disclosing documents means producing the documents before any authority or…
Q: According to the text, what hierarchical system of social organization is sexism interwoven with?
A: The correct answer is: (B) Patriarchy Patriarchy is a hierarchical system of social organisation in…
Q: apital and Revenue Expenditures On April 29, Welllington Co. paid $1,530 to repair the…
A: The revenue expenditures are the short term expenses incurred for day to day operations.For example,…
Q: Ali Baba Tours uses a perpetual inventory system. Selected transactions for the month of July are…
A: FIFO states that the inventory that is purchased first by the company would be sold first. Whereas,…
Q: At the end of the year, the records of NCIS Corporation provided the following selected and…
A: ANSWER In this question it is specified that answer only for the sub part 5 and 6. The par value of…
Q: The following data was obtained from the current financial statements for Kelly Corporation: Net…
A: Introduction: Gross profit ratio is the percentage of gross profit earned by the company on its net…
Q: The income distribution in the United States has O become more equal between 1968 and 2008. O become…
A: Income Inequality means how unevenly income is distributed among all the members of a population.
Q: On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following…
A: Journal Entry A journal entry is a record of a business transaction in an…
Q: 7. Division X produces a single product for both Division Y and an external market. It has spare…
A: Variable cost is the cost incurred in producing the product which varies with the number of units…
Q: Inventory Analysis A company reports the following: Cost of goods sold $800,445 Average inventory…
A: Introduction: Following formulas are used: Inventory turnover = Cost of goods sold / Average…
Q: The corporation was organized early this year. Authorization was obtained to issue 100,000 shares of…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: On December 2, 2022, Andrew Corporation issued for cash 12,000 shares of no-par ordinary shares with…
A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: Flexible budget: Flexible budget is prepared to analyze the profitability of the business at…
Q: Premier Candle Company manufactures candles. The standard direct materials quantity required to…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: You, are the senior auditor assigned to the True Ltd. audit file. You are reviewing Truestar’s…
A: Introduction: Intangible tax asset: When the taxes owed under income tax are less than those owed…
Q: You decide, finally, to assess the company's liquidity and asset management. For both this year and…
A: WORKING CAPITAL Working Capital is the Difference between Current Assets & Current Liabilities.…
Q: Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g,…
A: The act of identifying and allocating expenses to the cost objects in your firm, such as items, a…
Q: Samuel Corporation's budgeted production is 64,000 units per month. Each unit requires 2 hours of…
A: Direct labor is the direct cost which is involved in the process of production. It is the wages paid…
Q: ! Required information Great Adventures Problem AP10-1 [The following information applies to the…
A: WORKINGS Nov5 Additional Shares - 118,000 shares @ $10 = $1,180,000 premium = $9 X 118,000 =…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $56.00 per unit…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: One important aspect of internal control is the segregation of duties, which makes certain types of…
A: Internal control is the process that is designed and implemented and reviewed in the organization to…
Q: 21. Which statement about rebates is correct? a. Agents can only give rebates that are shown on the…
A: Option 1 is correct Agents can only give rebates that are shown on the rebate schedule they file…
Q: Premises RM280,000; Motor vehicles RM20,400; Equipm Bank RM5,000. Margaret does not keep proper…
A: Statement of Profit/ Loss - A profit and loss (P&L) statement, sometimes referred to as an…
Q: Sarasota Inc. had beginning inventory of $23,000 at cost and $31,000 at retail. Net purchases were…
A: Ending inventory is the resulting amount after deducting the cost of goods sold from the cost of…
V6.
A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the
Prepare the journal entry to record the purchase:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A building with an appraisal value of $129,802.00 is made available at an offer price of $150,878.00. The purchaser acquires the property for $33,175.00 in cash, a 90-day note payable for $25,972.00, and a mortgage amounting to $57,161.00. What is the cost basis recorded in the buyer's accounting records to recognize this purchase? Select the correct answer. $129,802.00 $150,878.00 $117,703.00 $116,308.00Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Amount of Basket Purchase Recorded Amount Estimated Fair Value Percentage Land % Building Equipment Total $ Next > A 0 O E O e to search 远A building with an appraisal value of $125,332 is made available at an offer price of $156,559. The purchaser acquires the property for $31,021 in cash, a 90-day note payable for $27,704, and a mortgage amounting to $55,713. The cost basis recorded in the buyer's accounting records to recognize this purchase is a.$114,438 b.$125,538 c.$156,559 d.$125,332
- 1. Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $75,000, the building’s fair value is $60,000, and the equipment’s fair value is $15,000. Journalize the lump-sum purchase of the three assets for a total cost of $140,000. Assume you sign a note payable for this amount. Show all steps please.Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. Required 1. Allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Analysis Component 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset’s life?PS Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $32,000 salvage value. Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $537,300; land, $318,400; land improvements, $39,800; and four vehicles, $99,500. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Required 1B Required 2 Land improvements Vehicles Total Required 3 Estimated Market Value Percent of Total % % % % %…
- If a company is considering the purchase of a parcel of land that was originally acquired by the seller for $88,000, is currently offered for sale at $156,000, is considered by the purchaser as easily being worth $146,000, and is finally purchased for $143,000, the land should be recorded in the purchaser's books at:A building with an appraisal value of $132,577 is made available at an offer price of $159,843. The purchaser acquires the property for $35,884 in cash, a 90-day note payable for $24,556, and a mortgage amounting to $56,520, The cost of the building to be reported on the balance sheet is Oa. $123,959 Ob. S132577 Oc. S116960 Od, S159.843Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $499,800; land, $284,200; land improvements, $29,400; and four vehicles, $166,600. Required:1-a. Allocate the lump-sum purchase price to the separate assets purchased.1-b. Prepare the journal entry to record the purchase.2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value.3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
- Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Percentage Amount of Basket Purchase Recorded Amount Estimated Fair Value Land % Building Equipment % Total $ ere to search ASUSLexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $527,350; land, $308,450; land improvements, $49,750; and four vehicles, $109,450. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to th separate assets purchased. Total cost of Acquisition Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ 0…