Mee Company acquired land and building for P 5,500,000 cash at the beginning of the current year. The land was fairly valued at P 2,400,000 and the building at P 3,600,000. Unpaid property taxes assumed by Mee Company amounted to P 250,000. The entity also incurred building renovation of P 500,000, option of P 50,000 on land and building not acquired, cost of survey P 30,000, escrow fee of P 100,000 and real estate commission of P 200,000. ____ 3. What is the cost of land? a. 2,420,000 b. 2,450,000 c. 2,470,000 d. 2,500,000 _____4. What is the cost of building? a. 4,160,000 b. 4,130,000 c. 4,070,000 d. 3,800,000

Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $ 1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $ 2,000 due for the current year after the purchase date. Amos also paid a contractor $ 10,000 to tear down a dilapidated building on the property. The capitalized cos of the land is: A. $61, 150 B. $73, 150 C.$ 71, 150 D. $70,650

ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet:     Book Value Fair Value Current Assets $50,000 $  50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000   What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000

Timberly Construction makes a lump - sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $ 487,600; land, $285,200; land improvements, $73,600; and four vehicles, $73,600. Allocate the lump - sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. 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. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double - declining - balance depreciation.