Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment of $4,800,000. An independent appraiser estimated fair values of $2,600,000, $1,560,000, and $1,040,000 for the building, land, and furniture, respectively. Compute the costs recorded by Sanders for the building, land, and furniture, respectively.

Q: Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500…

A: Items to be included in Capitalizable cost of land :-  Purchase price  Past due taxes Title search…

Q: Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditures related to…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…

A: Computation of the Intial value of the patent is as follows :

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $90,000 and…

A:

Q: At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a…

A: Grants means the amount received without any sale of product or providing any services. When grants…

Q: On April 1, Oriole Company purchased for $1548000 a tract of land on which a warehouse and office…

A: Calculate the amount that Oriole should record for the land.

Q: Oman Drydock Company purchased a site near Barka for OMR 25000. In addition to the purchase price…

A: Cost of the asset = Purchase price + tax amount paid  + agent’s commission + legal and registration…

Q: Taylor Computer Services purchased a tract of land and contracted with a builder to build an office…

A: Cost of land: The cost of land comprises the purchase price (cash plus any notes due), brokerage…

Q: Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down…

A: The land is purchased at a fixed sum, and the costs of preparing the site for construction are…

Q: Uy Company acquired a tract of land on which was located an office building, a warehouse, and…

A: A lump-sum payment is a total amount that is paid by the buyer to the seller for the acquired…

Q: On Jan. 1, Town Company purchased for P5,400,000, including appraiser fee of P50,000, a warehouse…

A: The initial measurement of the land and warehouse building will be total cost of acquisition…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Impairment loss is occurred when the fair value of asset is less than the carrying value of an…

Q: Murphy Fumiture purchased land, paying $60,000 cash and signing a $290,000 note payable. In…

A: Cost of land = Cash paid + Note payable issued + Property tax + Title insurance + Level of land

Q: At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.…

A: Cost allocation is a method of allocating or assigning the total cost to the individual object as…

Q: Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The…

A: Here in this question we are required to prepare single entry for purchasing land its improvement…

Q: PERIODIC REGULAR Co. acquired a building on January 1, 20x1 for a total cost of ₱24,000,000 and…

A: Fair Value Model - According to IAS - 40, Investment in property again measured at fair value of the…

Q: Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: lumpsum price including                                                       appraisal cost  is  $…

Q: Farah Corporation purchased land adjacent to its plant to improve access for trucks making…

A: Cost of Land refers to the worth of a piece of property, which includes values such as the value of…

Q: Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was…

A: Assets: Property or things owned by company are called Assets. Example: Buildings. Land etc

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: Land and Building are fixed assets however the treatment of both with regard to depreciation is…

Q: COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land…

A: Tangible assets can be defined as the asset that has a monetary value and has a physical form. These…

Q: On April 1, Proton Corporation purchased for P855,000 a tract of land on which was located a…

A: Fixed assets are assets that are purchased for a lengthy period of time and are unlikely to be…

Q: Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The…

A: The cost of an asset includes all the cost that makes the assets ready to use. So the cost of tear…

Q: At the beginning of current year, Darwin Company purchased a plating machine for 5,400,000. The…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land…

A: According to the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: Leni Company incurred the following costs during the current year: 10,000 10,000 Option fee for land…

A:

Q: Fullerton Waste Management purchased land and a warehouse for $600,000. In addition to the purchase…

A:

Q: Health Co. purchased land and building at a lump-sum price of P6,000,000. After the acquisition,…

A: Introduction: An acquisition is a situation in which a firm buys a major proportion of shares of…

Q: PERIODIC REGULAR Co. acquired a building on January 1, 20x1 for a total cost of ₱24,000,000 and…

A: The value of assets decreases every with a specific amount, which is called depreciation.…

Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…

A: Given, Amount paid for acquiring and = $200,000 Amount paid for an appraisal = $20,000 Land cost =…

Q: Cala Manufacturing purchases land for $259,000 as part of its plans to build a new plant. The…

A: Cost of land=Purchase value+Tear down of old building+Cost of…

Q: Algy Realty receives notice that its property is condemned to make room for a highway. The proceeds…

A: Realized gain or loss refers to those gains or losses which is earned or incurred by the company on…

Q: Laramie Corporation has acquired a property that included both land and a building for​ $590,000.…

A: Market value of the total assets  = (Market value of land + market value of building) = ( $350000 +…

Q: Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Northwest Delivery Company acquired an adjacent lot to construct a new warehouse, paying $75,000 and…

A: Amount paid for the construction of new warehouse will not be part of the cost of the land.

Q: Columbia Company incurred the following expenditures related to the land and building: Payment for…

A: The property, plant and equipment is initially measured at its cost. As per IAS 16 cost includes: 1.…

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: Fixed assets are the long-term assets that are used by the firm in the manufacturing of goods and…

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $44,000 in…

A: Land forms a part of assets of the entity and represent the resources that assist the business in…

Q: Facetious Company incurred the following expenditures related to the construction of a new home…

A: An expenditure is a sum of money spent on something. The term is more than just a creative way of…

Q: Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of…

A: 1. Formulas:

Q: Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment.…

A: Land   Buildings   Machinery and Equipment   Other   Abstract company’s fee for title search…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000.…

A: Red Rock Bakery purchased land, building & equipment all for $300,000 and the fair values of…

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: The capitalization cost of land includes the cost of demolition of the building, real estate, and…

Q: Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A:

Q: Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The…

A: The cost incurred to tear the old building on land and fill and level the lot at the time of…

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…