On January 1, 2017, Salina Company purchased land and a building for $2,240,000. At the time of the purchase, it was estimated that the building had a market value of $1,400,000. On January 5, Salina installed a fence around the property at a cost of $14,000. Given this information, the entry to record the cost of the fence would include a a.Debit to Fence Expense for $14,000. b.Debit to Land for $14,000. c.Credit to Land for $14,000. d.Debit to Land Improvements for $14,000.
On January 1, 2017, Salina Company purchased land and a building for $2,240,000. At the time of the purchase, it was estimated that the building had a market value of $1,400,000. On January 5, Salina installed a fence around the property at a cost of $14,000. Given this information, the entry to record the cost of the fence would include a a.Debit to Fence Expense for $14,000. b.Debit to Land for $14,000. c.Credit to Land for $14,000. d.Debit to Land Improvements for $14,000.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 11P
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On January 1, 2017, Salina Company purchased land and a building for $2,240,000. At the time of the purchase, it was estimated that the building had a market value of $1,400,000. On January 5, Salina installed a fence around the property at a cost of $14,000. Given this information, the entry to record the cost of the fence would include a
a.Debit to Fence Expense for $14,000.
b.Debit to Land for $14,000.
c.Credit to Land for $14,000.
d.Debit to Land Improvements for $14,000.
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