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 1. compute the cost of building 2. 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: Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditures related to…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

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 company paid $750,000 to buy a collection of asset. the asset had the following appraised…

A: The amount paid to buy collection of asset which is also called as basket purchase is to be…

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: [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: On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed…

A: Carrying value of asset is the net balance of asset which is left after making all adjustments…

Q: Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should…

A: The expenses can be treated as revenue expense or capital expenditure.

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: he following costs were incurred by ABCDEFGH, Inc.. during 2020:   July 1 Organization fees…

A: Cost of land is only ascertain out of total land and building cost acquired by ABCHEFGH Inc. We will…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Cost of Land = Purchase Price of Land + Legal Fees + Demolition of Old Building - Sale of scrap from…

Q: Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to…

A: Given information is: Teradene Corporation purchased land as a factory site and contracted with…

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: 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: 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: Biliran Company incurred the following costs at the beginning of the current year: Cost of land…

A: Non-current assets: Non-current assets are the assets purchased not the purpose of resale. It's…

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: Padre, Inc., purchased a used piece of heavy equipment for $25,000. Delivery of the equipmentto…

A: Annual depreciation refers to the amount of depreciation that is required to be charged on the value…

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: : Benedict Company incurred the following costs. 1. Sales tax on factory machinery purchased $ 5,000…

A: Journal entries are passed following the golden rules of Accounting.  Debit all assets and expenses…

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: A company paid $326,000 for property that included land, land improvements, and a building. The land…

A:

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

A: Calculation of Total Cash Expended :

Q: . A company paid $326,000 for property that included land, land improvements, and a building. The…

A: A land improvement is any investment made in the land to make it more usable.

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: Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase…

A:

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: 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: . What amount should be reported as cost of land? 2. What amount should be reported as cost of…

A: A. Value of the Land: Particulars Amount Purchase price of the land $60,000 Add: legal fees…

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: Noon Co. acquired land and building for 10,000,000. Noon Co. also made the following expedintures.…

A: (a) The following costs have been incurred,   (b)

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: 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…