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Amount should be recorded for land = Purchase price + Commission + Property tax paid on behalf of seller + Title insurance
= $82,000 + $8,000 + $5,400 + $2,200 = $97,600
Hence 2nd option is correct.
Cost recorded for equipment = Purchase price + Transportation + Sales tax + Installation cost
= $68,000 + $1,400 + $4,600 + $3,300 = $77,300
Hence last option is correct.
Company cannot recognized any goodwill as these expenditure will be treated as expense in profit and loss statment as company has not purchase the goodwill. Internally generate goodwill is not recognized.
Hence first option is correct.
A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title...
A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,400; sales tax paid $4,600; and installation cost, $3,300. The cost recorded for the equipment was: Multiple Choice $68,000 $69,400. $74,000. $77,300. A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by 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 $176,000 15,100 900 2,100 1,100 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 O $192,000 to Land: $1,100 to Building. O $194,100 to Land; $0 to Building....
Which answer is correct? A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $53,500; the land at $51,800, and the parking lot at $19,700. Land should be recorded in the accounting records with an allocated cost of: Multiple Choice o $100,000. o $41,440. o $51,800. o $0. o $47,440.
Question 1) A company purchased land adjacent to its existing property to build a warehouse. The company's maintenance crew and additional temporary employees built the warehouse. In addition, the company took out a $40,000 construction loan, which was repaid with a new loan after construction was completed. Which of the following statements is true? All costs associated with building the warehouse should be expensed as incurred. Materials costs should be capitalized to the building account, but all labor and interest...
Crane Company purchases land for $200000 cash. Crane assumes $5900 in property taxes due on the land. The title and attorney fees totaled $2300. Crane has the land graded for $4000. They paid $20000 for paving of a parking lot. What amount does Crane record as the cost for the land? O $206300. $212200 $232200. O $200000. Click if you would like to Show Work for this question: Open Show Work
A company purchased land, a building, and equipment for one price of $1,600,000. The estimated fair values of the land, building, and equipment are $200,000, $1,400,000, and $400,000, respectively. At what amount would the company record the land? Multiple Choice $160,000 o $170,000 $200,000 O $1,600,000 On July 1, 2021, Markwell Company acquired equipment. Markwell paid $195,000 in cash on July 1, 2021, and signed a $780,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022....
A company purchased property for $100,000. The property included a building, equipment and land. The building was appraised at $62,000, the land at $45,000, and the equipment at $18,000 for a total appraised value of $125,000. What is the amount of cost to be allocated to the building in the accounting records? $0 $49,600 $62,000 $100,000 A company purchased office equipment for $24,500 and paid $1,470 in sales tax, $550 for installation, $3,200 for a needed adjustment to the equipment,...
Accounting Practice Sunland Company purchases land for $185000 cash. Sunland assumes $5300 in property taxes due on the land. The title and attorney fees totaled $2400. Sunland has the land graded for $4300. They paid $15000 for paving of a parking lot. What amount does Sunland record as the cost for the land? O $185000. $191700. $212000. $197000.
Vijay Inc. purchased a three-acre tract of land for a building site for $250,000. On the land was a building with an appraised value of $122,000. The company demolished the old building at a cost of $12,900, but was able to sell scrap from the building for $1,700. The cost of title insurance was $890 and attorney fees for reviewing the contract were $430. Property taxes paid were $3,700, of which $240 covered the period subsequent to the purchase date....
Ryan Company purchased a building on January 1, 2021, for $265,000. In addition, during 2021 the following costs related to the building have been incurred: Utilities $ 27,000 Property tax 5,500 Expansion of the building 68,000 New air-conditioning system 43,000 General maintenance $ 34,000 The amount of expenditures to capitalize for the year (not including the initial purchase of the building) is: Multiple Choice $50,000. $53,000. $111,000. $102,000.