Merchant Company purchased property for a building site. The costs associated with the property were:         Purchase price $ 187,000 Real estate commissions   16,200 Legal fees   2,000 Expenses of clearing the land   3,200 Expenses to remove old building   2,200   What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Q: A company made the following expenditures in connection with the construction of a new building:…

A:

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A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Old Room Co. purchased land and building for a lump-sum price of ₱48,000,000. The existing building…

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Q: Determining Cost of Land Fastball Delivery Company acquired an adjacent lot to construct a new…

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A: The answer is stated below:

Q: Old Room Co. purchased land and building for a lump-sum price of ₱48,000,000. The existing building…

A: The allocated cost of land and the new building is calculated as follows:

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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: A company purchased property for a building site. The costs associated with the property were:…

A: Solution: Cost of Land will include all of the costs which makes the land to be ready for building.…

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

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A: Journal entry: A journal entry is a record of the business transactions within the accounting books…

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A: Calculation of Total Cash Expended :

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

A: The Costs associated with the property were include the all cost related to property to use.

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A: 1. Formulas:

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Q: Determine the initial valuation of each of the assets Teradene acquired in the above transactions.…

A:

Q: MAGANDANGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under…

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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…