7. The portion of a group purchase of $640,000 allocated to land when the land is appraised at $170,000 and the building on the land is appraised at $510,000 is A) $180,000. B) $160,000. C) $213,333. D) $480,000.
Q: A company purchased a back hoe at a cost of $39,000 and sold it two years later for $25,700.…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the…
A: FIFO is first in first method that is used under process costing. In this method, units that are…
Q: Wildhorse Company purchased, on January 1, 2025, as an available-for-sale security, $87,000 of the…
A: Available-for-sale security (AFS)An available-for-sale security (AFS) is a debt or equity security…
Q: After several years of profitable operations, Javell, the sole shareholder of JBD Incorporated, a C…
A: There is an availability of the dividend distribution deduction available to the ZNO corporation as…
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: This question deals with the concept of whether increase in advertising budget or not.We will…
Q: per share of stock.\\n \\n\\nRequired:\\n\\nFor each of the events above, prepare journal…
A: For real accounts (such as cash) debit what comes in and credit what goes out.For Personal Accounts…
Q: Which of the following costing methods allocates overhead costs based on the direct labor hours or…
A: Lets understand the basics.Overhead costs can be allocated to product using,(1) Traditional costing…
Q: Early in the accounting period, Sam Smith paid $6,000 for services in advance of receiving them;…
A: To record any unrecognized income or expenses for the period company made an adjusting entry at the…
Q: d. Their AGI is $30,000, consisting of $5,000 of wages and $25,000 of lottery winnings (unearned…
A: AGI = $30,000Earned Income = $5,000Maximum Earned Income Credit = $1,700Maximum Earned Credit =…
Q: Munoz Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: Lets understand the basics.The budget is prepared to estimate the requirements for the future…
Q: Novelli's Nursery has developed the following data in order to calculate the lower of cost or net…
A: The lower cost or net realizable value method indicates that businesses should recognize the…
Q: The charges to Work in Process-Assembly Department for a period, together with information…
A: Let's define the concept that is crucial to keep in mind for this activity first. Equivalent units…
Q: [The following information applies to the questions displayed below.] In 2024, the Westgate…
A: The construction company uses the percentage of completion method to determine its earned revenue…
Q: Mercier Manufacturing produces a plastic part in three sequential departments: Extruding,…
A: It is the report that gives information about the total units produced and total cost incurred…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155,…
A: 1)Calculation of the financial advantage (disadvantage) of accepting the new customer’s order are as…
Q: Franklin Construction Company expects to build three new homes during a specific accounting period.…
A: Allocating indirect costs (overhead) to cost objects (such as goods, services, or departments) is in…
Q: Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost…
A: Fixed cost is the cost that does not change with a change in goods or services production. It is not…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Cost allocation is the process using which the costs of different departments or the common costs of…
Q: . Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset…
A: Ratio analysis is a technique used to evaluate the financial performance of a company by analyzing…
Q: On January 1, Big Company acquires all of the common stock of Little Company by issuing 400,000…
A: When one company (investor) invests in another company (investee), the accounting treatment required…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90,…
A: Relevant costing considers the cost that is directly attributable to the specific product or service…
Q: Determine the amount of taxable income and separately stated items in each of the cases below.…
A: Taxable income refers to the portion of an individual's or a business's income that is subject to…
Q: The Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on…
A: Journal Entries: In double-entry bookkeeping, there are at least two journal entries for every…
Q: Required Information [The following Information applies to the questions displayed below.] Hart…
A: The journal entries are prepared to record the transactions on regular basis. The variance is the…
Q: vi.9
A: The objective of the question is to determine whether Joy recognizes $8,000 of imputed compensation…
Q: Required: 1. Prepare a scattergraph using the above data. Plot cost on the vertical axis and…
A: 1.Prepare scatter graph for processing cost at various levels of activity as follows:The scatter…
Q: In 2022, Oriole Ltd. issued $57,000 of 8% bonds at par, with each $1,000 bond being convertible into…
A: Diluted Earnings per share assesses the company's quality of earnings per share. It assess company's…
Q: During Year 2, Chico Company earned $3,800 of cash revenue, paid $1,550 of cash expenses, and paid a…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: Your answer is incorrect. Grouper Corporation reports operating expenses of $99,900 excluding…
A: Cash payment for operating expenses is the amount of cash paid for the operating expenses. Operating…
Q: 5
A: Process costing is one of the cost accounting methods. It is used when the company indulged in the…
Q: Which of the following cash flows would be included under the operating activities secton of the…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Statement one The fire risk assessment uses the same process as any other risk assessment and has…
A: d) Statements one and two are correct Explanation:The most appropriate answer is (d) "Statements one…
Q: In 2020, Tim, a single taxpayer, has ordinary income of $30,000. In addition, he has $2,000 in…
A: Adjusted Gross Income (AGI): It refers to the sum total of all the gross earnings made by an…
Q: QUESTION 2 After all adjusting entries have been made on December 31, the end of the year, the…
A: Closing entries are required to close the temporary accounts after making financial statements…
Q: On January 1 of Year 1, Lessee Inc. leased property at a semiannual payment of $60,000, payable each…
A: A lease is a contract or arrangement between parties where one agrees to transfer the right to use…
Q: For this intro accounting class, Are there any study tips you have used in this class and past…
A: The objective of the question is to provide effective study tips and habits that can contribute to…
Q: Exercise 1-19 (Static) Computation of Fair Value LO 1-5 Prant Company acquired all of Sedford…
A: Fair value accounting is used to determine the assets and liabilities of the firm based on their…
Q: At the end of its first year, the trial balance of Carla Vista Company shows Equipment $34, 600 and…
A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…
Q: A company pays employees at the end of each month. Payroll information is listed below for January,…
A: Payroll taxes are applicable to employers and employees which must be adjusted by employer at the…
Q: Required: a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2.…
A: PartciularsAmountRemaining LifeAmortizationConsideration transferred by…
Q: Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for…
A: The cost per hour and the fixed cost per month from the total cost to segregate those two from the…
Q: Based upon the following balance sheet accounts for simms company, determine the current ratio: Cash…
A: The objective of this question is to calculate the current ratio for Simms company based on the…
Q: Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to…
A: An amortization schedule of bonds is made and prepared through which the schedule for every payment…
Q: Which of the following are characteristics of management accounting information?
A: Statement 1: Non-financial as well as financialThis means that control accounting information…
Q: Calculate annual depreciation expense using the straight-line, units-of-production, and…
A: Depreciation expense :—It is the allocation of depreciable cost of asset over the estimated useful…
Q: Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East…
A: Full costing, another name for absorption costing, is an accounting technique that accounts for all…
Q: how did you come up with the values for entry S ?
A: Entry SCommon Stock (Young)$200,000Additional Paid-in Capital (Young)$60,000Retained Earnings,…
Q: Depreclation expense $14, 200 Prepaid insurance $2,000 What is the amount included in the Other…
A: The "Other Items" section of Miller's income statement typically includes items that are not…
Q: Record each of the following events in the horizontal statements model. After each event, record the…
A: The year end adjustment entry is one of the primarily task in performing the transactions and…
Manji
Step by step
Solved in 3 steps
- 1. Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $75,000, the building’s fair value is $60,000, and the equipment’s fair value is $15,000. Journalize the lump-sum purchase of the three assets for a total cost of $140,000. Assume you sign a note payable for this amount. Show all steps please.An entity accounted for land using the revaluation model. On October 1,2020, the entity classified the land as held for sale. At that date, thecarrying amount of the land was P5,000,000 and the balance in therevaluation surplus was P1,500,000. At the same date, the fair value of theland was estimated at P5,500,000. The estimated cost of disposal isP100,000. On December 31, 2020, the fair value less cost of disposal ofthe land did not change. On October 1, 2021, the land was sold forP7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000B. 2,000,000C. 500,000D. ZeroCalculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?
- On 30 June 2021, Wheel Ltd opted to adopt the revaluation model to measure land. According to AASB116, applying the revaluation model, which of the following figures must be used to measure land on 30 June 2021: Financial Value At date: Amount Concept 30 June 2018 $500,000 Initial cost when purchased Selling price for land 30 June 2021 $950,000 30 June 2021 $900,000 Cost to purchase an identical block of land $800,000 Present Value of estimated cash inflows from using land 30 June 2021 Select one: a. $950,000 O b. $900,000 O c. $500,000 O d. $800,000At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.The entity incurred additional cost of P3,000,000 during the remainder of the year in subdividing the land for sale.Of the tract acreage, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park. Lot class Number of lots Sale price per lot A 100 240,000B 100 160,000C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class A lots?Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.
- 3) Glenmore Reservoir Corporation paid $4,000,000 in a lump-sum purchase of land, a building, and equipment. The payment consisted of $1,500,000 cash and a note payable for the balance. An appraisal indicated the following fair values at the time of the purchase: Land $ 1,600,000 Bullding 2,500,000 Equipment 500,000 Prepare the journal entry to record this lump-sum purchase (round all percentage calculations to two decimal places).At the beginning of the current year, Diamond Company Problem 11-23 (AICPA Adapted) purchased a tract of land for P12,000,000. The entity incurred additional cost of Pa,000,000 during the remainder of the year in subdividing the land for aale Of the tract nccrenge, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park Sale, price per lot Lot elass Number of lots 100 100 200 240,000 160,000 100,000 C. Using the relative sales value method, what amount of cot should be allocated to Class A lota? a 3,000,000 b. 3,750,000 e. 6,000,000 d. 7,200,00016. On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 Total P5,500,000 P4,800,000 At what amount should the warehouse be recorded?
- A $48,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate is 30%, calculate UCC for the end of year 3. Select one: a. $15,800 b. $18,300 c. $19,992 d. $17,400 e. $16,660 ???Topic: Government Grants Entity A received land with fair value of P 200,000 from the government conditioned with the construction of a building on the lot. Entity A started immediately the construction and it was completed on Dec. 31, 2021 for a total cost of P 1,000,000. The building has an estimated useful life of 10 years with no residual value. How much is income from the government grant in 2021 and 2022? a. P 0 and P 200,000, respectively b. P 0 and P 20,000, respectively c. P 200,000 and P 0, respectively d. P 20,000 and P 20,000, respectivelyAn entity accounted for land using the revaluation model. On October 1,2020, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of the land was estimated at P5,500,000. The estimated cost of disposal is PI 00,000. On December 31,2020, the fair value less cost of disposal of the land did not change. On October 1,2021, the land was sold for P7,000,000.What is the impairment loss in 2020