None Apple Corporation purchased a tract of unimproved land for $610,000. This land was improved and subdivided into building lots at aadditional cost of $125,000. These building lots were all of the same size but owing to differences in location were offered for sale atdifferent prices as follows:GroupNo. ofLotsPrice per Lot121$25,00021320,0003918,000Operating expenses for the year allocated to this project total $72,500. Lots unsold at the year-end were as follows:Group 19 lotsGroup 23 lotsGroup 34 lotsAt the end of the fiscal year Apple Corporation instructs you to arrive at the net income realized on this operation to date. (Do notround intermediate calculations. Round final answer to 0 decimal places, e.g. 5,845.)Net income$

1. Total Cost of the ProjectPurchase price of the land: $610,000Additional costs for improvements…

Answered: Apple Corporation purchased a tract of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PA: Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the...

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-Qdinson Company purchased a tract of land for P 12,000,000. The entity incurred additional cost of P 3,000,000 during the remainder of the year in preparing the land for sale. The tract of land was subdivided into residential lots. Number of Lots Sales Price per Lot P 240,000 160,000 100,000 Lot Class A 100 B 100 200 Using the relative sales price method, what amount should be allocated to Class A Lots? A. P3,000,000 В. Р 3,750,000 C. P6,000,000 D. P7,200,000
At the beginning of the current year, Diamond Company Problem 11-23 (AICPA Adapted) purchased a tract of land for P12,000,000. The entity incurred additional cost of Pa,000,000 during the remainder of the year in subdividing the land for aale Of the tract nccrenge, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park Sale, price per lot Lot elass Number of lots 100 100 200 240,000 160,000 100,000 C. Using the relative sales value method, what amount of cot should be allocated to Class A lota? a 3,000,000 b. 3,750,000 e. 6,000,000 d. 7,200,000
At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.The entity incurred additional cost of P3,000,000 during the remainder of the year in subdividing the land for sale.Of the tract acreage, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park. Lot class Number of lots Sale price per lot A 100 240,000B 100 160,000C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class A lots?
Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and eventually sold. Taxes and documentation expenses on the transfer of the property amounted to P80,000. Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None 100,000 300,000 В 20 80,000 C 40 70,000 50 60,000 800,000 14. What amount should be allocated as total cost of Class B lots under the relative sales price method?
Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised for $84,000 and the building appraised for $336,000. How much of the purchaseprice should be allocated to the cost of the land?a. $75,000b. $80,000c. $84,000d. $400,000
Lenny Corporation purchased for P690,000 a tract of land on which a warehouse and office building were located. The following data were collected concerning the property: Current Assessed Vendor's Valuation Original Cost Land P280,000 P180,000 Warehouse 320,000 315,000 Office Building 200,000 129,000 P800,000 P624,000 Determine the appropriate amount that Lenny should charge to land. a. P280,000 b. P199,000 c. P241,500 d. P690,000
Solid Company purchased a plot of ground for P18,000,000. The entity also paid an independent appraiser for the land the amount of P500,000. The land was developed as residential lots at a total cost of P41,500,000. The lots were classified as follows: Number of lots Sales price per lot Highland Midland Lowland 20 40 1,000,000 750,000 500,000 100 Required: Compute the total cost of each lot classification.
residential lots at a cost of P43,500,000. Problem 11-14 (AICPA Adapted) Landmark Company purchased a tract of unimproved land for P26,850,000. The land was improved and subdivided into in location were offered for sale at different prices as follows: Problem 11-14 (AICPA Adapted) A These lots were all of the same size but owing to differences a location were offered for sale at different prices as follows: Group 000 No. of lots Sales price per lot 20 3,000,000 2,500,000 2,000,000 10 10 Lots unsold at the end of the year are: Group 1 Group 2 Gróup 3 5 lots 4 lots 3 lots Required: Compute the cost of unsold lots at the end of the year. 123
Relative Sales Value Method: -- Apple Corporation purchased a track of unimproved land for $610,000. This land was improved and subdivided into building lots at an additional cost of $125,000. These Building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of lots Price per Lot 1 21 25,000 2 13 20,000 3 9 18,000 Operating expenses for the year allocated to this project total $72,500. Lots unsold at the year-ended were as follows: Group No. of lots 1 9 2 3 3 4 INSTRUCTIONS: At the end of the fiscal year Apple…
Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $2,100,000 for the land. Tree Lovers will sell the lumber as it is harvested and expects to deplete it over five years (twenty acres in year one, thirty acres in year two, twenty-five acres in year three, fifteen acres in year four, and ten acres in year five). Calculate the depletion expense for the next five years and create the journal entry for year one.
At the beginning of the current year, CakeCompany purchased for P5,400,000, including appraiser's fee of P50,000, a warehouse building and the land on which it is located. The following data were available concerning the property: Land (Current appraised value)-P2,000,000 Land (Seller's original cost)-P1,400,000 Warehouse building (Current appraised value)- P3,000,000 Warehouse building (Seller's original cost)-P2,800,000 What is the initial measurement of the land?
Pittsfela Sound Center paid $200,000 for a group purchase of land, bulding, and equipment At the time of the acquisition, the land had a market value of $105,000, the bulding $84.000, and the equpment $21,000. Journalze the lump-sum prchase of the three assets for a total cost of $200.000. the amount for which the business signed a note payabie. (Record a sngle compound journal enty. Record debits frst then eredits Select the explanation on the last ine of the joumal entry table) Date Accounts and Explanation Debit Credit Land Buiding Equoment Notes Payable

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