None On April 1, 2025, Marigold Company received a condemnation award of $464,400 cash as compensation for the forced sale of thecompany's land and building, which stood in the path of a new state highway. The land and building cost $64,800 and $302,400,respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $172,800.On August 1, 2025, Marigold purchased a piece of replacement property for cash. The new land cost $97,200, and the new buildingcost $432,000.Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in theproblem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "NoEntry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)DateAccount Titles and ExplanationDebitCredit

Journal entries : The journal entries can be prepared as follows, DATE…

Answered: On April 1, 2025, Marigold Company…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 85P

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On April 1, 2025, Skysong Company received a condemnation award of $481,600 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $67,200 and $313,600, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $179,200. On August 1, 2025, Skysong purchased a piece of replacement property for cash. The new land cost $100,800, and the new building cost $448,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit TING Credit
On March 31, 2024, Susquehanna Insurance purchased an office building for $12,000,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,360,000 and $860,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Service Life Residual Value Building 30 10% of cost Furniture and fixtures 20 10% of cost Office equipment 10 $ 46,000 Required: Calculate depreciation for the years ended December 31, 2024 and 2025. What book values would be reported in the December 31, 2025, balance sheet (including land)?
(Disposition of Assets) On April 1, 2017, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $160,000. On August 1, 2017, Estafan purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $400,000.InstructionsPrepare the journal entries to record the transactions on April 1 and August 1, 2017.
On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale (condemnation) of the company's land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $450,000 and $765,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $337,500. On December 1, 2017, Carla Vista purchased a piece of replacement property for cash. The new land cost $324,000, and the new building cost $963,000. Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 December 1
On July 1, 2017, Sandhill Company received $1,012,000 cash as compensation for the forced sale (condemnation) of the company’s land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $460,000 and $782,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $345,000. On December 1, 2017, Sandhill purchased a piece of replacement property for cash. The new land cost $331,200, and the new building cost $984,400.Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
On January 1,2015, Rekto Corporation acquired a building at a cost of $22,000,000. The building has been depreciated using the straight-line basis of a 20-year life, with a residual value of $2,000,000. On January 1,2020, an appraisal of the building by professional and competent appraisers reported a fair value of $20,000,000, with an estimated residual value of $3,000,000 and a remaining useful life of 10 years. It is the company's policy to transfer a portion of the revaluation surplus to retained earnings while the asset is being used by the company. Assume that the accumulated depreciation of the revalued asset is restated proportionately with the change in the gross carrying amount of the asset. What is the revaluation surplus recognized in the accounts at January 1,2020
On March 1, 2027, Crane Company acquired real estate, on which it planned to construct a small office building, by paying $86,500 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $1,960. Additional expenditures before construction began included $1,460 attorney's fee for work concerning the land purchase, $5,150 real estate broker's fee, $8,960 architect's fee, and $15,300 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $ 115950
On March 1, 2022, Crane Corporation acquired real estate, on which it planned to construct a small office building, by paying $83,200 in cash. An old warehouse on the property was demolished at a cost of $8,480; the salvaged materials were sold for $1,720. Additional expenditures before construction began included a $1,560 legal fee for work concerning the land purchase, a $9,440 architect's fee, and $14,560 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of Land $
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a bullding for $710,000. Additionally. Blackstone paid a real estate broker's commission of $47,000, legal fees of $6,500, and title insurance of $23,500. The closing statement indicated that the land value was $555,000 and the building value was $155,000. Shortly after acquisition, the building was razed at a cost of $86,000. Blackstone entered into a $4,100,00o0 fixed-price contract with Barnett Builders, Inc., on March 1, 2021, for the construction of an office building on land site 11. The building was completed and occupied on September 30, 2022. Additional construction costs were incurred as follows: Plans, specifications, and blueprints Architects fees for design and supervision $23,000 95,000 To finance the construction cost, Blackstone borrowed $4,100,000 on March 1, 2021, The loan is payable in 10 annual installments of $410,000 plus interest at the rate of 12%. Blackstone's average…
On December 1, 2018, Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000. Depreciation on the plant since it was originally acquired has been charged at P5,000 per month. The company undertook all the necessary actions to be able to classify the asset as held for sale. It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process. On December 31, 2018, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000. Case 1: Any gain on the subsequent increase in the fair value less cost to sell of a noncurrent asset classified as held for sale should be treated as follows: a. The gain should be recognized in full. b. The gain should not be recognized. c. The gain should…
On December 1, 2019, Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000. Depreciation on the plant since it was originally acquired has been charged at P5,000 per month. The company undertook all the necessary actions to be able to classify the asset as held for sale. It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process. On December 31, 2019, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000. If Joy Corporation had not sold the plant as of December 31, 2020 and the recoverable amount at that date is P315,00, the plant should be carried in Joy's statement of financial position at 31 December 2020 at
On January 1, 2018, the Blackstone Corporation purchased a tract of land (site number 11) with a building for$600,000. Additionally, Blackstone paid a real estate broker’s commission of $36,000, legal fees of $6,000, andtitle insurance of $18,000. The closing statement indicated that the land value was $500,000 and the buildingvalue was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000.Blackstone entered into a $3,000,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2018, forthe construction of an office building on land site 11. The building was completed and occupied on September30, 2019. Additional construction costs were incurred as follows:Plans, specifications, and blueprints $12,000Architects’ fees for design and supervision 95,000To finance the construction cost, Blackstone borrowed $3,000,000 on March 1, 2018. The loan is payable in 10annual installments of $300,000 plus interest at the rate of 14%. Blackstone’s average amounts…

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