Chapter 9

FE17 Revson Corporation purchased land adjacent to its plant to improve access for trucks makingdeliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000;broker’s fees, $6,000; title search and other fees, $5,000; demolition of an old building on theproperty, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and pavingdriveway, $25,000; lighting $7,500; signs, $1,500.List the items and amounts that should be included in the Land account

23. Disposal of a Tangible Capital Asset On August 30, Lhasa Manufacturing Company decided to sell one of its fabricating machines, which was 15 years old, for $6,000. The machine, which originally cost $105,000, had accumulated depreciation of $102,500. Required: Prepare the journal entry to record the disposal of the machine

3

ABC Company made expenditures for the following:   Cost of purchased building to be used in various R & D projects                         P 200,000 Depreciation on the building described above                              16,000 Cost of the machine to be used on only one R & D project                             200,000 Modification to the formulation of a chemical product                               15,000 Laboratory research aimed at discovery of new technology                               12,000                                       How much is recognized as  research and development  expense? ____________

A company made the following expenditures in connection with the construction of a new building: Architect's fees 100,000 14,400,000 Cash paid for land and unusable building on the land Construction costs of new building 48,000,000 Construction survey 50,000 Excavation for basement construction 1,200,000 Freight on machinery purchased 76,800 Installation of machinery 120,000 Legal fees for title search 144,000 Machinery purchased for operations 4,800,000 Removal of old building 864,000 Salvage from sale of old building materials Special base for the machinery (192,000) 10,000 Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2. Assuming that the Building will be depreciated over 10 years with no salvage value, how much should be the annual depreciation expense? 3. Assume that the company will use unit-of production method for the depreciation of machinery. The estimated total production is 1,000,000 units with the following production for the…

Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $83,000; interest charges, $500; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300; and clearing and grading of the land, $8,100. Required: Determine the cost of the land. X Feedback Check My Work The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These expenditures are said to be capitalized. screen rec

Determining the Cost of an AssetOmar Corporation paid $200,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of $20,000 and a new warehouse was constructed on the site at a cost of $550,000. In addition, several other costs were incurred: Legal fees (associated with the purchase of the land) $35,000 Architect fees (associated with the new warehouse) $42,000 Interest on the construction loan (for the new warehouse) $18,000   (a) What value should be assigned to the tract of land? $Answer     (b) What value should be assigned to the new warehouse? $Answer

Current Attempt in Progress On March 1, 2022, Martinez Company acquired real estate on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $1.500 attorney's fee for work concerning the land purchase, $4,600 real estate broker's fee, $7,100 architect's fee, and $13,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of land $

Glenwood Industrial Gear, Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build a retail store: Purchase price of the land $450,000 Cash received from Sale of salvaged parts already on land $20,000 Current year property taxes $3,400 Demolition of the old building $30,000 Ground breaking ceremony (food and supplies) $3,500 Back Property Taxes $14,700 Land preparation and leveling $17,500   What amount should Glenwood Industrial Gear, Inc. capitalize for the land asset? Group of answer choices

Current Attempt in Progress On March 1, 2022, Sunland 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 $9,700; the salvaged materials were sold for $2,600. Additional expenditures before construction began included $1,550 attorney's fee for work concerning the land purchase, $5,100 real estate broker's fee, $7,550 architect's fee, and $13,550 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land 2$ e Textbook and Media List of Accounts Attempts: unlimited Submit Answer Save for Later

Complete the Depletion on December 31,2021

On December 1, 2010, Hogan Co. purchased a tract of land as a factory site for $800,000. The old building on the property was razed, and salvaged materials resulting from demolition were sold. Additional costs incurred and salvage proceeds realized during December 2010 were as follows: 150. Cost to raze old building Legal fees for purchase contract and to record ownership Title guarantee insurance Proceeds from sale of salvaged materials $70,000 10,000 16,000 8,000 In Hogan's December 31, 2010 statement of financial position, what amount should be reported as land? a. $826,000. b. $862,000. c. $888,000. d. $896,000.

Problem 26-11 (IAA) Paragon Company incurred the following costs during the eurrent year in relation to property, plant and equipmenț: 2,500,000 ' Cash paid for purchase of land Mortgage assumed on the land purchased, including interest accrued Realtor commission 1,000,000 300,000 50,000 Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property 100,000 Cost of tearing down an old building on the land to make room for construction of new building Salvage value of the old building demolished Cost of fencing the property after completion Amount paid to the contractor for the building constructed 5,000,000 Building permit fee Еxcacation Architect fée Interest that would have been earned had the money used during the period of construction been invested Invoice cost of machine acquired Freight, unloading and delivery charges Custom dutiés and other charges Allowances and hotel accommodation, paid to foreign technicians during installation…

Calculate below questions

• UPS purchased a six-acre tract of land in Columbia, SC and an existing building for $500,000. The company plans to remove the old building and construct a distribution hub and a small office building on the site. In addition to the purchase price, the company made the following expenditures at closing of the purchase: Title insurance $ 3,000 Commissions 16,000 Property taxes *6,000 • * The $6,000 in property taxes included $2,000 of delinquent taxes paid by UPS on behalf of the seller and $4,000 attributable to the portion of the current fiscal year after the purchase date. Shortly after closing, the company paid a contractor $25,000 to tear down the old building and remove it from the site. An additional $5,000 was paid to regrade the land. What amount should be capitalized?

can you please check my work

2. Mark Company

Dog

E10-6 Acquisition of Land and Building On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are:  Demolition of old building         $8,000 Architect’s fees                           $25,000 Legal fees for title investigation and purchase contract     $4,000 Construction costs       $650,000 Edwards sold salvaged materials resulting from the demolition for $2,000. Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? 2. Next Level If management misclassified a portion of the building’s cost as part of the cost of the land, what would be the effect on the financial statements?

3

Need help with this accounting question

17. Cost of a Tangible Capital Asset Borges Ltd. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $85,000; real estate commissions, $5,100; delinquent property taxes, $1,500; closing costs, $3,500; clearing and grading of the land, $8,100. Required: Determine the cost of the land.

6

A company resident in Jamaica purchased the following assets in 2021: Asset Cost                                                                            $ Honda Motor car purchased in March 2020                       38,000 Heavy Equipment                                                               50,000 Computer (CPU)                                                                 4,000 Factory Buildings                                                                 72,000 List two circumstances in which obtaining capital allowances on the reducingbalance basis is more beneficial than on the straight-line basis.

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately. Required:1. Calculate depletion for 2021.2. Is depletion considered part of the product cost and included in the cost of inventory?