Gomez Corporation purchased land, land improvements, and a building for $480,000. The assets are valued as follows:
| Asset | Appraised Value |
| Land | $100,000 |
| Land Improvements | 75,000 |
| Building | 325,000 |
How much should be debited to each account?
Rolland Company paid $250,000 to acquire a 50 ton press, $11,200 in freight charges, $3,500 for installation and $600 for testing. During installation, a Rolland employee accidentally broke a part that was repaired for $300.
What is the capitalized cost of the press?
| $264,700 |
| $265,300 |
| $265,600 |
| $261,200 |
| 1 | ||
| Amount debited to: | ||
| Land | 96000 | =480000/(100000+75000+325000)*100000 |
| Land Improvements | 72000 | =480000/(100000+75000+325000)*75000 |
| Building | 312000 | =480000/(100000+75000+325000)*325000 |
| 2 | ||
| Amount paid | 250000 | |
| Add: | ||
| Freight charges | 11200 | |
| Installation | 3500 | |
| Testing | 600 | |
| Capitalized cost of the press | 265300 | |
Gomez Corporation purchased land, land improvements, and a building for $480,000. The assets are valued as...
Question 4) Rolland Company paid $250,000 to acquire a 50 ton press, $11,200 in freight charges, $3,500 for installation and $600 for testing. During installation, a Rolland employee accidentally broke a part that was repaired for $300. What is the capitalized cost of the press? $264,700 $265,300 $265,600 $261,200 5) Patel Company purchased a factory including the land, a building, and factory machinery for $1,050,000. The fair values of the purchased assets were: Land $125,000 Building $655,000 Factory machinery $220,000...