There are two questions one is asking for journal entry, Please read and answer questions carefully. Red River Bakery purchases land, building, and equipment for a single purchase price of $380,000. However, the estimated fair valuesof the land, building, and equipment are $168,000, $264,000, and $48,00o, respectively, for a total estimated fair value of $480,00o.Required:Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment.AllocationAmount of BasketRecordedEstimated Fair ValuePercentagePurchaseAmountLandBuildingEquipmentTotal$2$ Holland Flour Mills purchased new equipment and made the following expenditures:Purchase priceSales taxShipment of equipmentInsurance on the equipment for the first yearInstallation of equipment$ 71, 0005,8009606601,920Required:Record the expenditures. All expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "NoJournal Entry Required" in the first account field.)View transaction listJournal entry worksheet1>Record the expenditures. All expenditures were paid in cash.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1

Introduction:- The following formulas used as follows under:- 1)Allocation percentage =Estimated…

Red River Bakery purchases land, building, and equipment for a single purchase price of $380,000. However, the estimated fair values of the land, building, and equipment are $168,000, $264,000, and $48,000, respectively, for a total estimated fair value of $480,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment. Allocation Amount of Basket Recorded Estimated Fair Value Percentage Purchase Amount Land Building Equipment Total

Red River Bakery purchases land, building, and equipment for a single purchase price of $380,000. However, the estimated fair values of the land, building, and equipment are $168,000, $264,000, and $48,000, respectively, for a total estimated fair value of $480,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment. Allocation Amount of Basket Recorded Estimated Fair Value Percentage Purchase Amount Land Building Equipment Total

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

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