Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.

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A: Solution: Cost of land to be reported = $377,305 Cost of land = cash paid to acquire land +…

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A: Formulas: Cost of land = Price of land + Note payable + Property tax + Title insurance + Demolition…

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $90,000 and…

A:

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A: Purchase Price of office building(including land)= $12000000 Price allocated between building &…

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A: The land is purchased at a fixed sum, and the costs of preparing the site for construction are…

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A: Land cost = Purchase price + Cost of tear down the old building + Cost to fill and level the lot =…

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…

A: Solution:- Calculation of the cost of land reported on the balance sheet as follows:-

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A: Cost of Land = Purchase Price of Land + Legal Fees + Demolition of Old Building - Sale of scrap from…

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: Lets understand the basics. Depletion needs to calculate when there is extraction of mineral…

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A: Cost of land = Cash paid to acquire land + Short-term note + legal fees + delinquent taxes + fees…

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A: The initial measurement of the land and warehouse building will be total cost of acquisition…

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A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Answer A: So, Alanna Co. should record the land in the books for $126,000.

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Land and building are the fixed assets for a company, used in production process. Though building…

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A: Capitalized cost of the land = Purchase price + Demolition costs of old building - Scrap sold +…

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A: cost of land = cost of land and warehouse purchased + brokers commission + title insurance +…

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A: Lets understand the basics. When land, building and furniture purchased cumulatively in single price…

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A: Requirement 1:

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A:

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A:

Q: Ayer Industries, Inc., purchased land, paying $95,000 cash as a down payment and signing a $170,000…

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A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

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A:

Q: Laramie Corporation has acquired a property that included both land and a building for​ $590,000.…

A: Market value of the total assets  = (Market value of land + market value of building) = ( $350000 +…

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A: Cost of acquisition of fixed assets include purchase price of fixed assets along with all costs…

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A: Amount paid for the construction of new warehouse will not be part of the cost of the land.

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A: Depreciation is reduction in value of asset due to usage and time.

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A: 1. Formulas:

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A: 1. Value to be capitalized: Purchase Price $3,000,000 Title Insurance $23,000 Add: Legal fees…

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A: Introduction: A compound journal entry is a journal entry where there are more than two accounts…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

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