developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000. Required: 1. Prepare the journal entry to record t

Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
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Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...
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A developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000.
Required:
1. Prepare the journal entry to record the acquisition of the land and building.
2. Next Level How should the 10-year agreement be reported in the financial statements?
3. Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?

 

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