Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of the accounting equation be affected?
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a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it.
b. Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of the
Answer sub-part b alone.
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- Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased?b. Assuming that the land acquired in (a) was sold for $2,125,000, how would the various elements of the accounting equation be affected?
- a) Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business recieves an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased? b) Assuming that the land acquired in (a) was sold for $2,125,00, how would the various elements of the accounting equation be affected?A. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Assuming that the land acquired in (A) was sold for $2,125,000, how would the various elements of the accounting equation be affected?Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased?
- 6. a. A business worth $ 900,000 purchased on land with an appraised value of $ 750,000 for property taxes. Ten years later, the parcel has an estimated value of $ 1,200,000 and the company receives an offer of $ 2,000,000 for it. Should I now increase the monetary amount allocated to land in business records? yes. Assuming that the land acquired in (a) was sold for $ 2,125,000, how would the various elements of the accounting equation be affected?For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A) Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000.B)A company records the expenses incurred to generate the revenues reported. C)When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. *At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000. During the current year, the following transactions occurred: A piece of land was acquired for P1,600,000. To be able to acquire the land, P200,000 was paid to a real estate agent, and P100,000 was incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P75,000 A second piece of land with a building was acquired for P5,400,000. The appraiser valued the land at P2,000,000 and the building at P1,000,000. Shortly after acquisition, the building was demolished at a cost of P100,000. A new building was constructed at a cost of P5,000,000 plus excavation fee P80,000, architect fee P120,000 and building permit P70,000. A third piece of land was acquired for P2,000,000 and was held for undetermined use. What total cost of land should be reported under property, plant and equipment? Group of answer choices 10,625,000…
- At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000. During the current year, the following transactions occurred: A piece of land was acquired for P1,600,000. To be able to acquire the land, P200,000 was paid to a real estate agent, and P100,000 was incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P75,000 A second piece of land with a building was acquired for P5,400,000. The appraiser valued the land at P2,000,000 and the building at P1,000,000. Shortly after acquisition, the building was demolished at a cost of P100,000. A new building was constructed at a cost of P5,000,000 plus excavation fee P80,000, architect fee P120,000 and building permit P70,000. A third piece of land was acquired for P2,000,000 and was held for undetermined use. What is the total cost of the building? Group of answer choices 14,670,000 14,570,000 12,870,000 12,770,000For each of the following situations, state whether you agree or disagree with the financial reporting practiceemployed, and briefly explain the reason for your answer.1. The controller of the Dumars Corporation increased the carrying value of land from its original cost of$2 million to its recently appraised value of $3.5 million.2. The president of Vosburgh Industries asked the company controller to charge miscellaneous expense for thepurchase of an automobile to be used solely for personal use.3. At the end of its 2018 fiscal year, Dower, Inc., received an order from a customer for $45,350. The merchandise will ship early in 2019. Because the sale was made to a long-time customer, the controller recorded thesale in 2018.4. At the beginning of its 2018 fiscal year, Rossi Imports paid $48,000 for a two-year lease on warehouse space.Rossi recorded the expenditure as an asset to be expensed equally over the two-year period of the lease.a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?b. Assume that the seller owes $80,000 on a loan for the land. After receiving the $298,000 cash in (a), the seller pays the $80,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?c. Is it true that a transaction always affects at least two elements (Assets,Liabilities, or Owner’s Equity) of the accounting equation? Explain.
