COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building 4,000,000 Remodeling and repairs prior to occupancy 500,000 Escrow fee 100,000 Clearing, leveling and landfill 250,000 Property tax for period after the acquisition 150,000 Real estate commission 300,000 1. compute the cost of building 2. compute the cost of land

COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building 4,000,000 Remodeling and repairs prior to occupancy 500,000 Escrow fee 100,000 Clearing, leveling and landfill 250,000 Property tax for period after the acquisition 150,000 Real estate commission 300,000 1. compute the cost of building 2. compute the cost of land

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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Utica 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?
Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4,740,000 C. 4,800,000 d. 4,940,000
Tacloban Company incurred the following costs at the beginning of the current year: cost of land, P1,000,000; cost of building, P4,000,000; remodeling and repairs prior to occupancy, P500,000; escrow fee, P100,000; clearing, leveling and landfill, P250,000; property tax for period prior to acquisition, P150,000; real estate commission P300,000. What is the cost of the building?
Leni Company incurred the following costs during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demolition of old building, net of salvage of P10,000 10,000 10,000 50,000 1,000,000 100,000 Architect fee 230,000 120,000 5,000,000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of building New fence surrounding the factory Driveways, parking bays and safety lighting 35,000 30,000 20,000 80,000 550,000 What is the cost of land and building, respectively? (Format of answer should be LAND: 1234567; BUILDING: 1234567)
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These 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
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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?
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BCareful incurred the following expenditures in 2020: Purchase of land P15,600,000 Land survey 208,000 Fees for search of title for land 24,000 Building construction permit fee 140,000 Temporary quarters for construction workers 430,000 Payments to tenants of the old building 184,000 Cost to raze the old building 940,000 Excavation of land 400,000 Special assessment of the government for road projects 80,000 Dividends that should have been earned had the money used for construction been invested in equity instruments 200,000 Damages awarded to injuries sustained in construction where no insurance is carried 336,000 Cost of construction 78,000,000 Cost of paving parking lot, driveway and sidewalks 1,600,000 Profit on construction, as the difference between the appraised value of the asset after construction and actual costs incurred 1,900,000 List price of machinery and equipment purchased…
Calculate 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?
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?

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Cost of land	1,000,000
Cost of building	4,000,000
Remodeling and repairs prior to occupancy	500,000
Escrow fee	100,000
Clearing, leveling and landfill	250,000
Property tax for period after the acquisition	150,000
Real estate commission	300,000