COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building 4,000,000 Remodeling and repairs prior to occupancy 500,000 Escrow fee 100,000 Clearing, leveling and landfill 250,000 Property tax for period after the acquisition 150,000 Real estate commission 300,000   Required: Compute the cost of building Compute the cost of land

Q: Prince company had bought $5,400,000, and additional realtor's fee of $50,000 an office building and…

A: When the assets are acquired in lump sum amount, then the same is apportionment in the ratio of…

Q: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: The question is related to ascertainment of cost of acquisition of Property, Plant and Equipment.…

Q: The following costs were incurred by HEHE, Inc.. during 2020: July 1 Organization fees P120,000…

A: As per the capitalized of fixed assets concept, all costs that are incurred for purchase of fixed…

Q: [The following information applies to the questions displayed below.) On January 1, Mitzu Company…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

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

A: Total cost of land = Purchase price + Real estate commission + Legal fees + Expenses of clearing the…

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: [The following Information applies to the questions displayed below.] On January 1, Mitzu Company…

A: The lump sum price paid to acquire various assets can be apportioned on the basis of their fair…

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: The Italian Bread Company purchased land as a factory site for $70,000. An old building on the…

A: Land and building are fixed assets which will be disclosed in the balance sheet. Building will be…

Q: On March 1, 2018, Beldon Corporation purchased land as a factory site for $60,000. An old building…

A: Given information is: On March 1, 2018, Beldon Corporation purchased land as a factory site for…

Q: On February 1, 20X1, ABC Corporation purchased a parcel of land as a factory site (unusable) for…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An…

A: Total appraised values = office furniture + Building + Land = $190,000 + $740,000 + $132,000 =…

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: Uy Company acquired a tract of land on which was located an office building, a warehouse, and…

A: A lump-sum payment is a total amount that is paid by the buyer to the seller for the acquired…

Q: Amount paid to the contractor for the building constructed P13,000,000 Building permit fee 120,000…

A: 1. Statement showing the cost of the land that should be capitalized:   Particulars Amount(P)…

Q: On Jan. 1, Town Company purchased for P5,400,000, including appraiser fee of P50,000, a warehouse…

A: The initial measurement of the land and warehouse building will be total cost of acquisition…

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: Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid…

A: The procedure of entering business transactions for the first time in the books of accounts is known…

Q: Kofkans company limited purchased land as a factory site and contracted with Maxtor Construction to…

A: Solution:

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: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: Cost of Land = Purchase price + Cost incurred to demolish old building - Proceeds from Scrap…

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: (The following information applies to the questions displayed below.] On January 1, Mitzu Company…

A: The journal keeps the record of day to day transactions of the business. The lump - sum paid for…

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: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $90,000 and…

A: Initial cost=Cash Payment+Short term note=$90,000+$50,000=$140,000

Q: Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment…

A: The cost can be allocated on the basis of the following formula = Lumsum amount  / Total fair value…

Q: During the fiscal year, ABC Company incurred the following costs related to property, plant and…

A: based on the nature of expenditure we will divide the expenses into the land, land development,…

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: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: Cost of Land = Purchase price + Cost incurred to demolish old building - Proceeds from Scrap…

Q: Sunset Co. Acquired land with old building for 6,000,000. After the acquisition, Sunset Co.…

A: Calculation of Total Cash Expended :

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: XYZ Company had the following transactions pertaining to its new office building: Purchase price of…

A: Capital expenditure and Revenue expenditure are two type of expenditure in business. Capital…

Q: exas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two…

A: Nature of Expense                   Eligible for Capitalization Not Allowed factory site YES…

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

A: 1. Formulas:

Q: Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment.…

A: Land   Buildings   Machinery and Equipment   Other   Abstract company’s fee for title search…

Q: Samyang Inc. acquired a land and an old unusable building for P7,500,000. Samyang contracted Busan…

A: Cost of Land = Purchase price + Cost incurred to demolish old building - Proceeds from Scrap…

Q: Worthington, Inc., paid $90,000 to acquire land, land improvements, and a building. The company…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000;…

A: In the above questions we have asked to pass journal entries on revaluation of property,plant and…

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

A: Plant asset:

Q: On April 1, 20x1, ESCULENT EDIBLE Co. purchased land and building by paying ₱40,000,000 and assuming…

A: The total amount paid for purchasing the land and building is allocated based on their fair value.…

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: a. The Hope Company purchased a building for $500,000. In addition, the following costs were…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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

A:

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…