Schwartzkopf Co. purchased for $2,200,000 property that included both land and a building to be used in operations. The seller’s book value was $300,000 for the land and $900,000 for the building. By appraisal, the fair value was estimated to be $500,000 for the land and $2,000,000 for the building. At what amount should Schwartzkopf ­report the land and the building at the end of the year?

Question

Schwartzkopf Co. purchased for $2,200,000 property that included both land and a building to be used in operations. The seller’s book value was $300,000 for the land and $900,000 for the building. By appraisal, the fair value was estimated to be $500,000 for the land and $2,000,000 for the building. At what amount should Schwartzkopf ­report the land and the building at the end of the year?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Twenty metrics of liquidity, Solvency, and Profitability The comparative financial statements of Aut...

A: Step 1 The days’ sales in inventory is 147 days. It is obtained by dividing the inventory of $627,8...

Q: How do managers decide whether a cost is adirect or an indirect cost?

A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost...

Q: Explain how losses on impaired intangible assets should be reported in income.

A: Impairment loss of assets arises when the carrying value of the assets recorded on the balance sheet...

Q: A 100-day note with a face amount of $54,000 and interest rate of 9% is issued on June 1. Required: ...

A: 1.

Q: corcese Inc. is involved in a lawsuit at December 31, 2020. (a) Prepare the December 31 entry assumi...

A: Provision is required to be made if loss is probable. If loss is not  probable, provision is not req...

Q: Use the following data from Burt Co., taken from the ledger after adjustment on December 31 the end ...

A:  

Q: BoTeck is a full-service technology company. It provides equipment, installation services, and train...

A: Click to see the answer

Q: Every annual report of a public company includes an extensive discussion and analysis provided by th...

A: Definition:   Annual report: Annual report is a comprehensive financial report which shows all the ...

Q: Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/...

A: Prepare journal entry for the sale of inventory.

Q: The cash record of Silver Maple Art Gallery for April, 2014 follows: Cash Receipts (CR) Cash Payment...

A: 1. Prepare Silver Maple Art Gallery’s bank reconciliation at April 30,2014 as shown below:  

Q: Kirkland Company manufactures a product for which materials are added at the beginning of the manufa...

A: The equivalent units Production under weighted-average method will be calculated as:

Q: Indicate which of the following costs should be expensed when incurred. a.    $13,000 paid to rearra...

A: Click to see the answer

Q: Chapter 4     Pg. 318 Facility, Product, Batch and Unit Levels.Would you please explain in great det...

A: The Facility, Product, Batch and Unit Levels are concerned with Activity based costing system which ...

Q: Computing and interpreting manufacturing unit costs. Minnesota Office Products (MOP) produces three ...

A: 1. Computation of the manufacturing cost per unit for each product produced in July 2017.  Step 1: E...

Q: Describe the  idle-time categories of indirect labor

A: Overheads are the cost and the expenses a company incurs for the production of a particular goods or...

Q: Name the items, in addition to the amount paid to the former owner or contractor, that may properly ...

A: Click to see the answer

Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and var...

A: High - low method is used to divide variable cost and fixed cost from the limited data available on ...

Q: Cemptex Corporation prepares its statement of cash flows using the indirect method to report operati...

A: Click to see the answer

Q: When will NOI under the variable costing method show higher income than under the absorption costing

A: Net Operating Income: It is a calculation used to assess the profitability of the business.

Q: Which statement is accurate concerning the FIFO method for assigning costs in a process costing syst...

A: The correct answer is Option (a).

Q: Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2020, is $20,000,000. ...

A: Assets are carried at the fair value on the date of revaluation under revaluation model for property...

Q: If intangibles are acquired for stock, how is the cost of the intangible determined?

A: An asset that has no physical appearance but has monetary value is known as intangible assets. 

Q: In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,00...

A: Click to see the answer

Q: Appendix: Earnings per share, discontinued operations The net income reported on the income statemen...

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities, ...

Q: Where does the management accounting function fit into an organization’s structure?

A: Click to see the answer

Q: Please Help

A: Click to see the answer

Q: Find FIFO and LIFO. question on image.

A: Periodic inventory system: The method or system of recording the transactions related to inventory o...

Q: Consider the following series of independentsituations in which a firm is about to make a strategic ...

A: Cost leadership:   This is the strategy to produce lowest cost in the industry. The objective is to ...

Q: The payroll of YellowCard Company for September 2020 is as follows. Total payroll was $480,000, of w...

A: Payroll Accounting: The process of payroll accounting includes the computation and payment of earnin...

Q: “Management accounting deals only with costs.” Do you agree? Explain.

A: At the very outset i would like to say that i do not agree that management accounting deals with onl...

Q: Ratios Analysis: McCormick McCormick & Company, Inc. is one of the world's leading producers of ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Streep Factory provides a 2-year warranty with one of its products which was first sold in 2020. Str...

A: Entry to record the sales.

Q: Select the letter of the item below that best matches the definitions that follow. a. Data Files CD ...

A:  

Q: Help please

A: Variances help in comparing the actual cost and revenues with the budgeted cost and revenues.  

Q: Describe ways the production cost report can be used by management.

A: Production Cost Report: A report which gives information about the total units produced and total co...

Q: Explain the terms to account for and accounted for.

A: Account Account is refer as the record in the general ledger which is used to sort and store the bus...

Q: A loss on impairment of an intangible asset under IFRS is the asset's: a. carrying amount less the e...

A:  

Q: how does the acid-test ratio differ from the current ratio? How are they similar?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt obli...

Q: Inventory records for Marvin Company revealed the following:  Date Transaction Numberof Units Uni...

A: In FIFO or first In First Out method, goods received first are dispatched first.

Q: Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase d...

A: Step 1 The purchase return is $1,080. It is obtained by multiplying the amount payable of $54,000 w...

Q: If merchandise sold on account is returned to the seller the seller may inform the customer of the d...

A: Concept introduction:   An organization can be manufacturing, servicing of merchandising type. For a...

Q: In a process costing system, manufacturing overhead applied is usually recorded as a debit to: 7. A....

A: Finished goods comprises of the units completed and sold and the opening and closing inventories. Wo...

Q: Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on acco...

A: a. Prepare journal entry for Conquest’s purchase:  

Q: Need help with the red box. Thank you

A: Statement of cash flows: Statement of cash flows reports all the cash transactions which are respons...

Q: Newly formed S&J Iron Corporation has 192,000 shares of $5 par common stock authorized. On March...

A:     STATEMENT OF CASH FLOWS Date                    AMOUNT ($) 1-Mar-18            149,500 FA 2-May-...

Q: Intangibles have either a limited useful life or an indefinite useful life. How should these two dif...

A: Click to see the answer

Q: PROBLEM 1             Mary Matthews made $950 in a biweekly pay period. Only social security (full...

A: When a company records the compensation of its employees, such type of accounting is known as payrol...

Q: Describe three different purposes for computing product costs

A: Product cost is the cost incurred to manufacture a product, it includes the material cost, labor cos...

Q: What is accounting?

A: Account: A record that documents or records the changes in assets, liabilities, or equity for a part...

Q: How is financial accounting different frommanagement accounting?

A: The financial accounting and the management accounting are used for taking decisions for the company...