On January 1, 2020, Williamsburg Inc. acquired a piece of land to construct a manufacturing plant. You have the following information about this transaction:
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A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS journal entry under fair value model
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A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
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A:
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- On January 1, 2021, LMT Inc. acquired a piece of land to construct a new office building. You have the following information about this transaction: Price of land $180,000 Tax on purchase of land 5% of price Legal fees to transfer property of land to LMT $4,500 Cost of demolishing old building on land 5,600 Income from sale of windows of old building demolished 500 Cost of new office building foundation 23,400 Cost of office building construction 460,000 Cost of insurance during construction 2,000 Cost to repair a piece of equipment used in the office building’s construction 1,000 Cost of annual insurance on office building after the construction is finished 6,000 LMT management decided to allocate the following amounts to the parts of the office building, and estimated the corresponding useful lives and residual values as follows: Allocated cost Useful life Residual value Windows $50,000 10…Sea shores is a property investment company that focuses on buying landing and buildings for purposes for rental and resale purposes. The company currently own the following land and buildings. Use Purchase date Depreciation policy cost Model Fair value on 31 Dec 2020 Braamfontein land Rented to the local municipality 30 June 2019 10 000 000 Fair value 14 000 000 Umhlanga building Consists of 50 apartments 30 apartments are rented to tenants 01 May 2020 20% on cost 20 000 000 Cost 25 000 000 Richards bay building Will be sold on appreciation of the value 30 April 2020 ? 8 400 000 cost 8 400 000 Richards Bay land Occupied by sea shores 1 January 2020 12 000 000 Cost 10 000 000 Pretoria Building Rented to tenants 1 February 2019 20% on cost 8 000 000 Fair value 10 545 800 Required Prepare all the necessary journal entry for the year ended 31 December 2020.Aber Company buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to $151,000. On 12/31/22, the land has an appraised value of $155,400. By what amount should the Land account be increased in 2022? Group of answer choices $6,000 $4,400 $0 $10,400
- a. The Hope Company purchased a building for $500,000. In addition, the following costs were incurred: at the purchase Broker commission $25,000 Transfer taxes 000'01 Closing costs Legal fees Past real estates owed by seller 000'0r 000'9 Before the building was open, another $100,000 of renovation costs were incurred to get the building ready for the company's use. After the building was open the following costs were incurred: Current real estate taxes Minor repairs 000 Instructions; Calculate the amount that should be debited to the building account at acquisition. b. 1. On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years or 320,000 units and the salvage value was $5,000. The expected unit output per year is as follows: 1. 60,000 2. 100,000 3. 40,000 4. 90,000 5. 30,000 Instructions; On the worksheet provided, compute the depreciation expense per year under straight-line, double declining balance and unit of activity methods 2. Based on…Assume Riverbed Manufacturing Company purchased land, a building, and some equipment on July 31, 2024, for $584800 cash. The land was appraised at $261920, the building at $350000, and the equipment at $42880. How much of the cost should be allocated to the land? $233920 $584800 $261920 $28000San Jose Realty Corporation acquired a tract of land on January 1, 2020 for P20 million. Transaction costs paid San Jose relating to its acquisition amounted to P800.000 The tract of land was subdivided into 400 residential lots having an area of 200 square meters each, after making provision for public and common roads, incurring additional cost of P6,200,000. At December 31, 2021, the market value per lot was P250,000.
- Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. XOn April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Original Cost Value Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 Total P5,500,000 P4,800,000 At what amount should the warehouse be recorded?On June 21, 2021, YY Trading acquired a property intended for future construction of a new building. The following costs were incurred: Acquisition cost of property 10,000,000 Demolition cost of old building 250,000 Transfer of title fees, legal fees 85,000 Surveying fees 30,000 Scrap metals from demolition proceeds 15,000 Grading and leveling of land 20,000 Annual property tax for 2022 paid on Nov. 5 15,000 As of year-end, the above property was valued at P10,385,000. At what amount was the company's income overstated during the year? Group of answer choices 15,000 30,000 0 Cannot be determined.
- Use the following information to answer the "fill in the blanks" question: Jimmy Fallon acquired 3 rental properties in 2020 as follows: Building $40,000 42,000 70,000 Land Property 1 Property 2 Property 3 $10,000 12,000 30,000 Total $ 50,000 54,000 100,000 In 2020, the rent revenue before expenses for all three properties was $42,000. The expenses, not including CCA, for all three properties were $32,000 (property taxes, insurance, interest and maintenance). What is the minimum amount of net rental income to be reported in 2020? A What is the UCC balance for each class of rental properties at December 31, 2020? A What is the maximum amount of CCA that can be deducted in 2020 if the net rental income before CCA was $7,000?Investment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land site for capital appreciation was acquired for P8,600,000. The company paid P430,000 commission to a real estate agent. Costs of P 135,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P 65,000. The cost of investment property is _____________ Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at __________Mazaya Company acquires land for RO 96,000 cash. Additional costs are as follows Removal of shed RO 400, Fitling and grading 1.530, Salvage value of lumber of shed 120, Broker commission 1530, Paving of parking lot 10,000, Closing costs 650 Mazaya will record the acquisition cost of the land as Select one O a RO 96,00o. O b RO 99.990. O C RO 98,09o. O d RO 99.770.