Westwood Properties bought three lots in a subdivision for a​ lump-sum price. An independent appraiser valued the lots as​ follows:     Lot  Appraised Value Lot 1  $132,000 Lot 2  110,000 Lot 3  198,000 Westwood paid $355,000 in cash. Record the purchase in the​ journal, identifying each​ lot's cost in a separate Land account. Round decimals to two​ places, and use the computed percentages throughout. ​(Record a single compound journal entry. Record debits​ first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not​ abbreviate.)

Q: Landmark Company purchased a tract of unimproved land for P26,850,000. The land was improved and…

A: Total Cost = P26,850,000+P43,500,000=P70,350,000 Total Number of lots = 20+10+10=40 Cost per lot =…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000.…

A: Allocation percentage = Estimated fair value of assets / Total Estimated fair value of all assets…

Q: Blossom Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A: Cash amount should be allocated based on the ratio of fair value of assets.

Q: Perlman Land Development, Inc. purchased land for$70,000 and spent $30,000 developing it. It then…

A:

Q: Instructions: What is the cost allocated to grade C lots

A: Given,  Purchase cost of the land = 1500000 Subdivision in lots=               400 lots Selling…

Q: Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land…

A: $368,550 is a combined amount paid for 3 assets. To apply this amount individually, a ratio of their…

Q: Making a lump-sum purchase of assets Maplewood Properties bought three lots in a subdivision for a…

A: Lot Appraised value Percentage of total Appraised value  Purchase price Cost of sset   A B C (B*C)…

Q: On March 31, Higgins Repair Service extended an offer of $415,000 for land that had been priced for…

A: Cost concept: As per the cost concept, the assets of the companies are valued at their purchase…

Q: AI Barka acquires land for RO 102,000 cash. Additional costs are as follows: New Building RO 25,000…

A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600         Brokerage…

Q: AI Barka acquires land for RO 102,000 cash. Additional costs are as follows: New Building RO 25,000…

A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600…

Q: On March 31, Higgins Repair Service extended an offer of $415,000 for land that had been priced for…

A: Concept of cost: Assets of the organisation should be recorded at the acquisition cost or the…

Q: The following expenditures were incurred by Grouper Company in purchasing land: cash price $80,000,…

A: Land:   Land has an indefinite life that is used over time and is depreciated. Land is considered to…

Q: Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building. Land…

A: 1.)    Appraised value Percent of total appraised value x Total cost of acquisition =Apportioned…

Q: The following expenditures were incurred by Monty Company in purchasing land: cash price $73,000,…

A: The question is related to Property, Plant and Equipment. As par IAS 16 all cost that are directly…

Q: At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.…

A: Cost allocation is a method of allocating or assigning the total cost to the individual object as…

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: The concept under which the assets' acquisition is recorded at the amount paid for it can be…

Q: the following expeditures were incurred by Obermeyer company in purchasing land : cash price…

A:

Q: Rural Tech Support paid $190,000 for a group purchase of​ land, building, and equipment. At the…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: The concept under which the acquisition of the assets is recorded at the amount paid for it can be…

Q: On March 31, Higgins Repair Service extended an offer of $415,000 for land that had been priced for…

A: Cost concept: this is an accounting concept which states that actual cost paid in receipt of the…

Q: Questor Applications paid $180,000 for a group purchase of land, building, and equipment. At the…

A: Compute the amount of purchase price paid for the lump-sum purchase to be allocated to each asset as…

Q: On January 19, Ivanova Inc. buys a land that includes a building and a variety of land improvements…

A: Appraised value Percent of the total appraised value x Total cost of aquisition =Approtioned…

Q: Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised…

A: Plant assets: Plant assets refer to the fixed assets, having a useful life of more than a year that…

Q: Record the purchase in the​ journal, identifying each​ lot's cost in a separate Land account. Round…

A: Journal entry:   Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land…

A: A journal entry is being used to record a commercial transaction in the accounting records of a…

Q: Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost.…

A: Lets understand the basics. When consideration is paid less than the fair value of asset individual…

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: The cost concept of accounting states that all acquisitions of items (eg, assets or items needed for…

Q: GGG Company purchased a tract of land for P12,000,000. The entity incurred additional cost of…

A: Cost allocation is based on the total sales value. The relative share can be calculated by dividing…

Q: Two independent companies, Ball and Brown, are in the home building business. Each owns a tract of…

A: Here given the details of the cost of the land and its difference in the Appraisal value of the land…

Q: Doran Realty Company purchased a plot of ground for P800, 000 and spent P2, 100, 000 in developing…

A: Calculation of Total Revenue: Total revenue of Highland = no of lots x selling price.…

Q: ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the…

A: Lot A =    2,40,000   2,40,000/5,00,000 x 100 = 0.48 Lot B =    1,60,000   1,60,000/5,00,000 x 100 =…

Q: Concord Pet Care Clinic paid $130,000 for a group purchase of​ land, building, and equipment. At…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: hite purchased land with a current market value of $144,000, a building with a market value of…

A: Total market value of land, building nd equipment = $144, 000 + 18000 + 18000 =$180, 000

Q: Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land…

A: The lump sum paid for acquisition of different assets can be allocated to different assets on the…

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: Whenever company purchase land,it should be recorded at purchase cost irrespective of its market…

Q: Eastwood Properties bought three lots in a subdivision for a lump-sum price. An independent…

A: Introduction:- Calculation of total fair value based on information given as follows:- Lot…

Q: At what value should the land be recorded in Carpet Barn Company's records?

A: A historical cost is a measure of value used in accounting in which the value of an asset on the…

Q: Rodriguez Company pays $331,695 for real estate with land, land improvements, and a building. Land…

A: Cost to be apportioned to assets in percentage of total appraised value.

Q: Carver Incorporated purchased a building and the land on which the building is situated for a total…

A: Particulars Allocated cost Land (905,300 x 239,452 /1,041,095 ) 208,219 Building (905,300 x…

Q: Deadwood paid $265,000 in cash. Record the purchase in the journal, identifying each lot's cost in a…

A: Calculate the allocation of each lot:

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: Land is the kind of non-current or fixed asset. It is the asset which is kept for long term use and…

Q: Westwood paid $245,000 in cash. Record the purchase in the journal, identifying each lot's cost in a…

A: In the journal entry, the amount of cash paid would be allocated to each lot with respect to their…

Q: Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and…

A: cost of land purchased = cost of purchase and cost incurred for improvement = P5850000 + P80000  =…

Q: Solid Company purchased a plot of ground for P18 The entity also paid an independent appraiser for…

A: total cost of lots = purchase of ground + appraiser of land + cost of manufacturing

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.