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A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title...

A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 wer

A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equip

A company has the following expenditures during the year. Advertising Employee training Customer outreach and consultation $9

Multiple Choice $0. $118,750. $1,900,000. $237,500.

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 company on behalf of the seller and $3,100 due for the current year after the purchase date. For what amount should the company record the land? Multiple Choice $95,400. О O $97,600. $100,700. O $82,000.
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 O $69,400. $74,000. 0 $77,300.
A company has the following expenditures during the year. Advertising Employee training Customer outreach and consultation $950,000 118,750 831,250 The company believes that these efforts have increased the fair value of the entire company by $237,500. How much goodwill can the company recognize at the end of the year associated with these expenditures?
Multiple Choice $0. $118,750. $1,900,000. $237,500.
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Solution 1:

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.

Solution 2:

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.

Solution 3:

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.

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