Auto purchased a $500,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds as follows: Demolilitipn of existing building on site: $75,000 Legal and other fees to close escrow: $15,000 Proceeds from sale of demolition scrap: $10,000 What would be the cost of land?

Q: On December 1, 2020, BTS Company purchased a P4,000,000 tract of land for a factory site. BTS razed…

A: Accounting is the process of recording, classifying and summarising accounting information in such a…

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: The depreciation can be computed under various methods.  In case of multiple sub-parts, only first…

Q: Revson Corporation purchased land adjacent to its plant to improve access for trucks making…

A: We have the following information: Purchase price: $55,000 Broker’s fees: $6,000 Title search and…

Q: Reiley Co. purchased land as a factory site for P1,000,000. Reiley paid P40,000 to tear down two…

A: All fixed assets in the business should be capitalized with purchase cost and all other direct costs…

Q: Old Room Co. purchased land and building for a lump-sum price of ₱48,000,000. The existing building…

A: The question is multiple choice question and is relted to costs that would be charged as an expenses…

Q: JT Company purchased land as a factory site. An old building on the property was demolished, and…

A: 1. $5000 should be capitalised in Land account  2.D. As a reduction of cost of building.

Q: On January 1, 20x1, Horror Co. acquired a building costing ₱1,200,000. Professional fees for legal…

A: Investment property is the property which is held by the company to earn from it. The earnings from…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Impairment loss is occurred when the fair value of asset is less than the carrying value of an…

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: Cost of machine purchased=original cost+installation charges=$245000+$5000 =$250000 Useful life of…

Q: MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under…

A: The following statement is True... The amount of expense to be recognized is P700,000. Which is…

Q: Holly, Incorporated has a building that originally cost $425,000. Holly expects to be able to sell…

A: The residual value is the resale value of the asset after its useful life of assets. It is also…

Q: sted a depreciation schedule of straight-line and double- declining-balance depreciation methods.…

A: Depreciation refers to the concept which evaluates the decline rate of an asset until its entire…

Q: What is the sound value of this building?

A: Sound value is the replacement cost of property, less accrued depreciation. The replacement cost is…

Q: Old Room Co. purchased land and building for a lump-sum price of ₱48,000,000. The existing building…

A: The allocated cost of land and the new building is calculated as follows:

Q: Farah Corporation purchased land adjacent to its plant to improve access for trucks making…

A: Cost of Land refers to the worth of a piece of property, which includes values such as the value of…

Q: What value should be assigned to the tract of land? $Answer  What value should be assigned to the…

A: Cost assignment refers to the process which is used by the company to allocate the cost of product…

Q: Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the…

A: cost of land = cost of land and warehouse purchased + brokers commission + title insurance +…

Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…

A: The acquisition cost of fixed assets is apportioned to different assets on the basis of percentage…

Q: etermining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new…

A: At the time of recording or capitalising fixed assets, purchase costs along with all costs that are…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: All fixed assets in the business should be capitalised. Total costs incurred on acquisition and…

Q: On January 1, ProTech Co. pays a lump-sum amount of $1,550,000 for land, Building A, Building B, and…

A:

Q: The Open Grill incurred the following costs in acquiring a new piece of land: Purchase price $80,000…

A: Fixed assets means those assets which is used for the business purpose for many year to come and…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: The lump sum cost is allocated to assets on the basis of their fair value.

Q: At the beginning of current year, Nilli Company purchased a coal mine for P30,000,000. Removable…

A: Depletion expense is a charge against profits for the use of natural resources.it is most commonly…

Q: Health Co. purchased land and building at a lump-sum price of P6,000,000. After the acquisition,…

A: Introduction: An acquisition is a situation in which a firm buys a major proportion of shares of…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Given, Amount paid for acquiring and = $200,000 Amount paid for an appraisal = $20,000 Land cost =…

Q: On 1 May 20X2, Express Shipping Company (‘ESC’) paid $21,208,600 for land and a warehouse built on…

A: Proportionate cost of warehouse = $21,208,600×$11,361,750 $15,149,000 + $11,361,750 = $9,089,400…

Q: Merchant Company purchased property for a building site. The costs associated with the property…

A: Cost of asset includes all those expenses which are incurred to made the asset ready to use.

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: Declaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: At the beginning of the current year, Nili company purchased a coal mine for 30,000,000.  Removable…

A: The depletion expense is charged on coal mine as reduction in value of mine with coal removed.

Q: amela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to a…

A: Depreciation under the Straight Line method is computed under the following method: Depreciation =…

Q: Asura Co. purchased land and building for a lump-sum price of P48,000,000. The existing building…

A: Lump-sum purchase: - Lump-sum purchase occurs when different assets or a group of assets are…

Q: The Perkins Construction Company bought abuilding for $800,000 to be used as a warehouse.A number of…

A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: Cost of building refers to the cost which includes the purchase price which involves price paid to…

Q: Company x bought a house and lot for $1,500,000. The value of the land was appraised at $900,000 and…

A: The question is related to Property, Plant and Equipment. As per IAS 16 the Cost of Property, Plant…

Q: MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under…

A: The demolished cost of land is to be capitalised in the books of accounts and is recognised as…

Q: Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of…

A: 1. Formulas:

Q: Determine the initial valuation of each of the assets Teradene acquired in the above transactions.…

A:

Q: urchased a parcel of land as a factory site (unusable) for P320,000. An old building on the property…

A: Cost  of new building   Demolition of old building 21000 Architect's fee 31700 Construction…

Q: Simons Company purchased land to build a new factory. The following expenditures were made in…

A: Plant asset:

Q: MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under…

A: In the given case the demolished cost of the land will be capitalised in the books of accounts is…

Q: Holly, Incorporated has a building that originally cost $460,000. Holly expects to be able to sell…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: During the current year, Hitchcock Developers disposed of plant assets in the following…

A: Loss (feb 10)=24000-21800=2,200

Q: At the beginning of current year, Nilli company purchased a coal mine for P30,000,000. Removable…

A: All natural resources that are being acquired by the business loses their value over the period of…

Q: Required: 1. What cost should the company assign to the land, buildings, and equipment,…

A:

Q: MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under…

A: The question is related to IAS 16 Property, Plant and Equipment. As per IAS 16 the cost of PPE…

Q: DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the…

A: The capitalized cost of land will be equal to the initial cost of land i.e. the acquisition price…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: The costs incurred to make the land available for use is included in the cost of land.