Question
Asked Dec 17, 2019
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Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Bullwinkle business
operations. Where should such real estate be listed on the balance sheet?

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Expert Answer

Step 1
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Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in its business activities, for generating revenue. Examples of fixed assets are Plant, Property, Equipment, Land, and Buildings.

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Step 2

Find where real estate (vacant land) should be li...

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Company B should report the vacant lot under the account head Current Assets as Investment.

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Accounting

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