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
Q: urchased land costs 2,500,000 and a Bank transfer is made. The cost of excavation of the old…
A:
Q: Harding Corporation acquired real estate that contained land, building and equipment. The property…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: A company acquired an office building, land, and equipment in a single basket purchase. The fair…
A: Estimated Fair value Land $21,60,000.00 Building $5,40,000.00 Equipment…
Q: Merchant Company purchased property for a building site. The costs associated with the property…
A: Total cost of land = Purchase price + Real estate commission + Legal fees + Expenses of clearing the…
Q: At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The…
A: Total Sales:- It is the value of those goods which are ready for sale in the market including profit…
Q: Old Room Co. purchased land and building for a lump-sum price of ₱48,000,000. The existing building…
A: The question is multiple choice question and is relted to costs that would be charged as an expenses…
Q: AI Barka acquires land for RO 102,000 cash. Additional costs are as follows: New Building RO 25,000…
A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600…
Q: a.Se buys a team for experimentation and research for $100,000. The equipment will depreciate using…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Uy Company acquired a tract of land on which was located an office building, a warehouse, and…
A: A lump-sum payment is a total amount that is paid by the buyer to the seller for the acquired…
Q: Barney Stinson purchased land and a building for his new men’s clothing store. The price paid was…
A: Historical cost of the building = Total Purchase cost for land and a building x fair value of the…
Q: These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed…
A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…
Q: The following expenditures were incurred by Monty Company in purchasing land: cash price $73,000,…
A: The question is related to Property, Plant and Equipment. As par IAS 16 all cost that are directly…
Q: At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.…
A: Cost allocation is a method of allocating or assigning the total cost to the individual object as…
Q: Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid…
A: The procedure of entering business transactions for the first time in the books of accounts is known…
Q: CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment…
A: A. As per IAS 16, Property, plant and Equipment In case Property is presented at cost model then it…
Q: Rodriguez Company pays $395,380 for real estate with land, land improvements, and a building. Land…
A: Percentage of total appraised value = (Appraised value / Total appraised value)*100
Q: Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Q: Roberto Company purchased a P4,000,000 tract of land as an investment property. The entity razed an…
A: Purchase of land: Purchase of land means acquiring the land or any part of land for carrying out the…
Q: 3. Shane Corporation purchased for $450,000 a tract of land on which was located a warehouse and an…
A: Solution: Current Assessed valuation Allocated Transaction value Land $100,000.00 $112,500.00…
Q: Rural Tech Support paid $190,000 for a group purchase of land, building, and equipment. At the…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: On January 19, Ivanova Inc. buys a land that includes a building and a variety of land improvements…
A: Appraised value Percent of the total appraised value x Total cost of aquisition =Approtioned…
Q: Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost.…
A: Lets understand the basics. When consideration is paid less than the fair value of asset individual…
Q: The company has recieved a donation of land from a rich local philanhropist. the land originally…
A: The donation of an asset is recorded at a value at which it can be sold or purchased in the market.…
Q: Javier purchased a building, including the land it was on, to assemble his new equipment. The total…
A: SOLUTION DEPRECIATION MEANS THE MONETARY VALUE OF AN ASSET DECREASE OVER TIME DUE TO USE , WEAR AND…
Q: On April 1, Bramble Corp. purchased for $1629000 a tract of land on which a warehouse and office…
A: Given, Total purchase cost of assets = $1,629,000 Total current assessed valuation = $1,800,000
Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…
A: The journal entries are prepared to record the day to day transactions of the business.
Q: Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land…
A: Introduction: A journal entry records a business transaction in the accounting system of an…
Q: GGG Company purchased a tract of land for P12,000,000. The entity incurred additional cost of…
A: Cost allocation is based on the total sales value. The relative share can be calculated by dividing…
Q: Purchased for P5,500,000, including appraiser fee of P100,000´a warehouse building and the land on…
A: Journal entry: A journal entry is a record of the business transactions within the accounting books…
Q: ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the…
A: Lot A = 2,40,000 2,40,000/5,00,000 x 100 = 0.48 Lot B = 1,60,000 1,60,000/5,00,000 x 100 =…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…
Q: Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land…
A: The lump sum paid for acquisition of different assets can be allocated to different assets on the…
Q: Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000…
A: Allocation of cost of a lump-sum payment is based on the proportion of assets
Q: The company purchased land for $150,000 cash. Commissions of $9,000, property taxes of $3,750, and…
A: Cost of the Land = Purchase costs + Commission + Property taxes paid by the company on behalf of the…
Q: A company purchased land, a building, and equipment for one price of $1,800,000. The estimated fair…
A: Calculation of percentage of total fair value: Assets Fair value % of Total Land $225,000…
Q: Carver Incorporated purchased a building and the land on which the building is situated for a total…
A: Particulars Allocated cost Land (905,300 x 239,452 /1,041,095 ) 208,219 Building (905,300 x…
Q: Worthington, Inc., paid $90,000 to acquire land, land improvements, and a building. The company…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Unilever acquires land for $86,000 cash. Additional costs are as follows: removal of shed $300,…
A: As per IAS 16 property plant and equipment. Cost of equipment includes all costs that are incurred…
Q: 3. Purchased for P5,500,000, including appraiser fee of P100,000´a warehouse building and the land…
A: Lump-sum purchase of fixed asset When two or more fixed assets are purchased for a lump-sum(single…
Q: Schwartzkopf Co. purchased for $2,200,000 propertythat included both land and a building to be used…
A:
Q: Carver Inc. purchased a building and the land on which the building is situated for a total cost of…
A: The accounting term is lump sum purchase. Lump Sum Purchase: When the assets are purchased or…
Q: Use the following information for the next two (2) questions: On April 1, 2022, Pacific Corporation…
A: Purchase price is allocated among the various acquired assets based on their fair market values. If…
Q: Simons Company purchased land to build a new factory. The following expenditures were made in…
A: Plant asset:
Q: A company purchased land for $91300 cash. Real estate brokers' commission was $6000 and $7000 was…
A: Historical cost principle: According to the principle of historical cost, the cost incurred to…
Q: Shaun Pollok purchased a car wash for $480,000. If purchased separately, the land would have cost…
A: Separate value of asset = Actual value / Overall cost of all asset * Estimated cost of asset
Q: Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and…
A: cost of land purchased = cost of purchase and cost incurred for improvement = P5850000 + P80000 =…
Q: Solid Company purchased a plot of ground for P18 The entity also paid an independent appraiser for…
A: total cost of lots = purchase of ground + appraiser of land + cost of manufacturing
Q: SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair…
A: In combined purchases, all the different assets are purchase at a single price. So we have to divide…
Carlos Company purchased a building and land for $400,000 in total. Individually, the land
appraised for $84,000 and the building appraised for $336,000. How much of the purchase
price should be allocated to the cost of the land?
a. $75,000
b. $80,000
c. $84,000
d. $400,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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?-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. P7,200,000These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed accrued property taxes $4,500, attorney's fees $2,100, real estate broker's commission $3,000, and clearing and grading $4,000. What is the cost of the land? The cost of the land 73900
- At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The entity incurred additional cost of 1,500,000 durinhg the remainder of the year in preparing the land for sale. The tract was subdivided into residential lots as follows: LOT CLASS Number of lots Sales Price per lot A 100 P240,000 B 100 P160,000 C 200 P100,000 If 150 class C lots were sold, How much is the cost of unsold class C lots?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?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
- Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase: • Purchase price of the land, $150,000 • Real estate commissions of 7% of the purchase price • Land survey, $5,000 • Back taxes, $5,000 What is the initial value of the land? a. $160,000 b. $160,500 c. $165,500 d. $170,500Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?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.
- Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places. A. $171,000 B. $132,000 C. $316,667 D. $114,000Rodriguez Company pays $384,345 for real estate with land, land improvements, and a building. Land is appraised at $234,000; land improvements are appraised at $52,000; and the building is appraised at $234,000.1. Allocate the total cost among the three assets.2. Prepare the journal entry to record the purchase.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