Oriole Enterprises incurred several costs related to the acquisition of plant assets.Purchase price of land and dilapidated buildingReal estate broker's commissionDemolition costs of dilapidated buildingArchitect's fees and building permitsPayments to contract for building constructionPurchase of new furniture and equipmentActual interest costs during building constructionActual interest cost after completion of building constructionCosts of walks, driveways, and parking lot$228800O $243760$248160$311520O $2631201496019360211207656006512011880010560048400At what amount should the land be recorded in Oriole's accounting records?

Land be recorded in Oriole's accounting records=purchase price of land & dilapidated…

Answered: Oriole Enterprises incurred several…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PA: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Norma Company. Cost of land site (which included an old apartment building appraised at 75,000). Legal fees, including fee for title search Payment of apartment building mortgage and related interest due at time of sale Payment for delinquent property taxes assumed by the purchaser Cost of razing the apartment building Proceeds from sale of salvaged materials Grading to establish proper drainage flow on land site Architect's fees on new building Proceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property) Payment to building contractor Payment of medical bills of employee accidentally injured while inspecting building construction Special assessment for paving city sidewalks (paid to city) Cost of paving driveway and parking lot Cost of installing lights in…
Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $155,000 (fair value) upon completion. Materials $50,000 80,000 Labor 30,000 5,000 2,000 $167,000 Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized t Account Name Dr. Cr. 155,000 Building To record the costs of construction building interest Expense To record the completion of the building. 155,000
Determining Ending Balances in Land and Building Accounts Maldive Company completes the construction of a building. The following separate items are the costs relevant to the purchase of the lot and construction of the building. Cash payments to contractor Costs of constructing foundation Cost of land (building site) Gross cost to raze old building on land Proceeds from old building salvage Utility charges for electricity used in construction Capitalized interest on construction $80,000 2,400 40,000 16,000 Check 4,000 1,600 2,400 Determine the ending balance for (1) the Land account and for (2) the Building account. Ending balance in the Land account $ 40,000 * Ending balance in the Building account $ 102,800 *
Current Attempt in Progress Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. Computer installation cost 2. 3. 4. 5. 6. 7. 8. 9. 10. Driveway cost Architect's fee Surveying costs Grading costs Cost of lighting for the parking lot Insurance while in transit and freight on a computer purchased Material and labor costs incurred to construct a factory Cost of tearing down a warehouse on land just purchased Utility cost during the first year 4
Sunland Enterprises incurred several costs related to the acquisition of plant assets. Purchase price of land and dilapidated building $ 301600 Real estate broker's commission 19720 Demolition costs of dilapidated building 25520 Architect's fees and building permits 27840 Payments to contract for building construction 1009200 Purchase of new furniture and equipment 85840 Actual interest costs during building construction 156600 Actual interest cost after completion of building construction 139200 Costs of walks, driveways, and parking lot 63800 At what amount should the building be recorded in Sunland’s accounting records? $ 1009200 $ 1193640 $ 1219160 $ 1037040
Facetious Company incurred the following expenditures related to the construction of a new home office: Purchase price of land and an old apartment building 2,000,000 Fair value of land 1,800,000 Legal fees, including fee for title search 10,000 Payment of land mortgage and related interest due at time of sale 50,000 Payment of delinquent property taxes assumed 20,000 Cost of razing the apartment building 30,000 Grading and drainage on land site 15,000 Architect fee on new building 200,000 Payment to building contractor 8,000,000 Interest cost on specific borrowing during construction 300,000 Payment of medical bills of employees accidentally injured while inspecting building construction 10,000 Cost of paving driveway and parking lot 40,000 Cost of trees, shrubs and other landscaping 55,000 Cost of installing lights in parking lot 5,000 Premium for insurance on building during construction 25,000 Cost of open house party to celebrate opening of building 60,000 1. What is the cost…
A company made the following expenditures in connection with the construction of a new building: Architect's fees 100,000 14,400,000 Cash paid for land and unusable building on the land Construction costs of new building 48,000,000 Construction survey 50,000 Excavation for basement construction 1,200,000 76,800 Freight on machinery purchased Installation of machinery Legal fees for title search Machinery purchased for operations Removal of old building Salvage from sale of old building materials 120,000 144,000 4,800,000 864,000 (192,000) Special base for the machinery 10,000 Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2. Assuming that the Building will be depreciated over 10 years with no salvage value, how much should be the annual depreciation expense? 3. Assume that the company will use unit-of production method for the depreciation of machinery. The estimated total production is 1000.000 units with the following production for the…
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to remove old building What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building? Multiple Choice $181,300 to Land; $20,800 to Building. $196,800 to Land; $1,500 to Building. $195,500 to Land; $5,300 to Building. $199,300 to Land; $0 to Building. $ 180,000 15,500 1,300 2,500 1,500 $200,800 to Land; $0 to Building.
Columbia Company incurred the following expenditures related to the land and building: Payment for land and old building 1,750,000 Demolition of old building to prepare the land for the construction of a new building 87,500 Payment to tenants for vacating old building 26,250 Building permit for new construction 52,500 Surveying fee before construction of new building 35,000 Parking lots and driveways (part of building plan) 70,000 Cost of grading, leveling and landfill 78,750 Assessment by city for drainage project 8,750 Construction costs of new building 10,500,000 Temporary quarters for…
Inclusion in Property, Plant, and Equipment Guthrie Inc. must determine whether the following items are included in property, plant, and equipment: a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on a building being constructed by a contractor f. fully depredated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease Required: 1. Indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. 2. Next Level For each item excluded from property, plant, and equipment, explain why it was excluded.
Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys 7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled 2,500. Building permits totaled 1,200. Compute the acquisition cost of the land.
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?

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