Below are transactions related to Tamarisk Company.a.b.C.The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be$78,560.13,000 shares of common stock with a par value of $50 per share are issued in exchange for land and buildings. The propertyhas been appraised at a fair value of $785,600, of which $186,030 has been allocated to land and $599,570 to buildings. Thestock of Tamarisk Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months agoat $69 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $61 per share.No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properlychargeable to plant asset accounts for machinery constructed during the year. The following information is given relative tocosts of the machinery constructed.Materials usedFactory supplies usedDirect labor incurredAdditional overhead (over regular) caused by construction of machinery, excluding factory supplies usedFixed overhead rate applied to regular manufacturing operationsCost of similar machinery if it had been purchased from outside suppliers$13,24086715,9402,67760% of direct laborcost46,610Prepare journal entries on the books of Tamarisk Company to record these transactions. (Credit account titles are automatically indentedwhen 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. Listall debit entries before credit entries.) No. Account Titles and Explanationa.b.C.DebitCredit

Journal is a record of financial transactions in chronological order.It provides a detailed account…

Prepare journal entries on the books of Tamarisk Company to record these transactions. (Credit account titles are automatically indented vhen 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.)

Prepare journal entries on the books of Tamarisk Company to record these transactions. (Credit account titles are automatically indented vhen 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.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 69TA

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