Q: Determine the cost of the amount to be reported for the followings.JJ Company acquires real estate at a cash cost of Rs= 1,000,000. The property contains an old warehouse that is razed at Rs=40,000 in costs and Rs15,000 proceeds from salvaged materials. Additional expenditures are the attorney’s fee =Rs5,000, and the real estate broker’s commission= Rs25,000. Required: Determine the amount to be reported as the cost of the land?DD Company purchases a delivery truck at a cash price of Rs=840,000. Related expenditures are sales taxes Rs= 26,400, painting and lettering Rs=10,000, motor vehicle license Rs= 1200, and a three-year accident insurance policy Rs=30,000. Compute the cost of the delivery truck?

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Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...

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Q: Determine the cost of the amount to be reported for the followings.

1. JJ Company acquires real estate at a cash cost of Rs= 1,000,000. The property contains an old warehouse that is razed at Rs=40,000 in costs and Rs15,000 proceeds from salvaged materials. Additional expenditures are the attorney’s fee =Rs5,000, and the real estate broker’s commission= Rs25,000. Required: Determine the amount to be reported as the cost of the land?
2. DD Company purchases a delivery truck at a cash price of Rs=840,000. Related expenditures are sales taxes Rs= 26,400, painting and lettering Rs=10,000, motor vehicle license Rs= 1200, and a three-year accident insurance policy Rs=30,000. Compute the cost of the delivery truck?

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