Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company entered into the following transactions: 1. Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. Of the purchase price, $810,000 is allocated to the cost of the building, and the remaining balance to the land. 2. Paid $30,000 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 12 years and has no salvage value.
Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company entered into the following transactions: 1. Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. Of the purchase price, $810,000 is allocated to the cost of the building, and the remaining balance to the land. 2. Paid $30,000 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 12 years and has no salvage value.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1AFE
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