Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $514,100; land, $329,800; land improvements, $48,500; and four vehicles, $77,600. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.

Cimi Manufacturing had the following transactions related to the purchase of long-term assets. During 2025, purchased land for $380,000 with plans to build a new facility.  The company pays $23,500 to demolish a building that was on the land and an additional $17,000 to grade the land in preparation for the new building.  Construction cost of the new building was $$2,100,000.  The parking lot and related lighting cost $41,000.  Cimi's employee wages during this time of construction were $214,000.  On Nov 5, 2025, Cimi purchased machinery to be install in the new facility.  the machine had a price of $28,000 with term 2/10, n/30, and FOB shipping point.  Cimi always pays within the discount period.  Transporation cost of $680 wer paid.  Additionally, the following costs related to installation of the machine were incurred:  installation cost $7,600 of which $5,000 of this was parts, testing costs of $900.  During installation, damage to a neighboring company's warehouse occured, costing…

Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.

On January 2, 2022, Lauren Corporation purchased factory equipment for $850,000. In addition, it paid $82,000 in sales tax and $7,000 in installation charges.  Shipping costs to ship the equipment to the factory were $2,500 and were paid by Lauren.   Lauren paid $300,000 in cash and signed a two-year note for the balance.   Required:   Prepare the journal entry to record the acquisition of this equipment. Assuming straight-line depreciation, an estimated residual value of $75,000 and an estimated life of 10 years, prepare the journal entry for the depreciation expense for 2021.

On March 1, 2020, Swifty Company acquired real estate on which it planned to construct a small office building. The company paid $92,000 in cash. An old warehouse on the property was razed at a cost of $8,400; the salvaged materials were sold for $2,500. Additional expenditures before construction began included $1,100 attorney’s fee for work concerning the land purchase, $5,800 real estate broker’s fee, $7,000 architect’s fee, and $14,400 to put in driveways and a parking lot.(a)Determine the amount to be reported as the cost of the land.

On January 1, 2018, Lam Company, a calendar year corporation, purchased the rights to a mine. The total purchase price was 16,400,000, of which 2,000,000 was allocable to the land. Estimated reserves were 1,800,000 tons. The entity expected to extract and sell 25,000 tons per month. The entity purchased new equipment on March 1, 2018 for 7,500,000. The equipment had a useful life of 8 years. However after all the resource is removed, the equipment would be of no use and could be sold for 300,000. What amount should be recorded as depletion for 2018? What amount should be recorded as depreciation of the mining equipment for 2018?

On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $80,500 in cash. An old warehouse on the property was demolished at a cost of $8,300; the salvaged materials were sold for $1,720. Additional expenditures before construction began included $1,220 attorney's fee for work concerning the land purchase, $4,550 real estate broker's fee, $8.720 architect's fee, and $14,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.

Sheridan Corporation owns and manages a small 10-store shopping centre, which it classifies as an investment property. Sheridan has a May 31 year end and initially recognized the property at its acquisition cost of $11.2 million on June 2, 2022. The acquisition cost consisted of the purchase price of $105 million, costs to survey and transfer the property of $460,000, and legal fees to acquire the property of $240,000. Sheridan determines that approximately 26% of the shopping centre's value is attributable to the land, with the remainder attributable to the building. The following fair values are determined: Date May 31, 2023 May 31, 2024 Fair Value $10,700,000 $10,594,000 May 31, 2025 $11,208,000 Sheridan expects the shopping centre building to have a 35-year useful life and a residual value of $1.428 million. Sheridan uses the straight-line method for depreciation.

On July 1, 2021, Company A purchased land and buildings and agreed to rent the facility to a non-affiliated company on a month-by- month basis. Pertinent details follow: i. The company paid 6.0million fortheinvestmentpropertyplus200,000 in related legal fees. The purchase price was allocated 80% to the building and 20% to the land. ii. The estimated useful life of the building is 30 years at which time the salvage value is expected to be $0. iii. The company uses the straight-line method to depreciate all depreciable assets. iv. An appraisal valued the investment property at $6.4 million as at December 31, 2021, year-end-5.1millionbuildingand1.3 million land. Required (1) Prepare the journal entry to record the purchase of the property. (2) Prepare the year-end adjusting entries for 2021 assuming that the company elects to use the cost model to account for investment property. (3) Prepare the year-end adjusting entries for 2021 assuming that the company elects to use the fair value…