Shaffer will record the acquisition cost of the land at?
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A: Warehouse should be recorded at = Total amount paid x Current appraised value of warehouse / Total…
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A: The answer for the multiple choice question and relevant working are presented hereunder : Cash paid…
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A: The answer has been mentioned below.
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A: Acquisition cost : It is the total cost which contains the purchase price of the assets and charges…
Q: On lanuary 1, 2021, Contagious Company provided the following information related to the land and…
A: The revaluation surplus is the difference between book value and depreciated replacement value of an…
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A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600 Brokerage…
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A: As per IAS 16, Property, plant and equipment Cost of purchased property consists of purchase price…
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A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600…
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A: Acquisition cost of the machine = Invoice Price + Applicable sales tax + Freight + Cost of…
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A: "Since you have asked multiple questions, we will solve first question for you. if you want any…
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A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
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A: Particulars Amount Acquisition cost P54,000,000 Restoration and geological survey costs…
Q: 12 The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization…
A: All fixed assets should be capitalized in the balance sheet of the company. Fixed assets should be…
Q: Tamock Company purchased a plant from one of its suppliers. The $950,000 purchase price included the…
A: Total purchase price of an asset = Purchase price + legal fees = $950,000 +$6,000 = $956,000
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A: Solution:- 1)Determination the total acquisition cost of this "basket purchase" as follows:-
Q: DLW Corporation acquired and placed in service the following assets during the year: Cost Basis $…
A: Cost recovery is an accounting method in which a business only records revenue from a transaction…
Q: 1 QUE Sunland Company acquires land for $85700 cash. Additional costs are as follows: Removal of…
A: “Hey, since there are multiple questions posted, we will answer only one question, as per our…
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A: An investment property is a piece of real estate purchased with the intention of earning a return on…
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A: Net purchase price = Gross price - trade discount = 800,000 - 10,000 = 790,000
Q: Depletion Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2019. It…
A: Ending inventory in tons = 80,000 - 60,000 Ending inventory in tons = 20,000 tons
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A: Formulas used:- Capitalized interest = Weight average amount of accumulated construction expenditure…
Q: Oriole Company acquires land for $77000 cash. Additional costs are as follows. Removal of shed…
A: Acquisition cost of land = Purchase price + Removal of shed costs + Filling and grading - Salvage…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Particulars Current Appraised Value Land P2,200,000 Warehouse P3,300,000 Total…
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A: 1.Answer Cash paid $3,01,000 Add: Attorneys fee $ 1,500 Delinquent taxes $…
Q: 3. In purchasing some land, the Maxim Company made payments for the following: $4,000 Purchase price…
A: While recording the cost of the asset all those cost shall be included which were incurred untill…
Q: Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as…
A: OPTION D:- P 4,880,000 is the correct answer.
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A: Fixed assets means those assets which is used for the business purpose for many year to come and…
Q: - The business purchased a machine for 24.000 TL on 01.06.2020 . The scrap value of the machine is…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Bremer Company made the following exchanges of assets during 2019: Jan. 1 Acquired a more advanced…
A: The journal is prepared to record day to day financial transactions of the business. The assets and…
Q: 9. Entity A acquires an investment property for ₱1,000,000 cash. Additional costs incurred are as…
A: Depreciation is the reduction in the value of asset over the period of asset life. Under straight…
Q: GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as…
A: Cost of the building = Purchase price + Options + Repairs - Options incurred on a building which is…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Particulars Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse…
Q: ABC Co. acquired land, buildings, and equipment from XYZ Co. at a lump-sum price of P1,800,000. ABC…
A: If the amount paid for purchasing more than one asset then the cost of the asset is determined by…
Q: A. ACQUISITION COSTS Mr. Ardi acquired land at a cost of Rp4.200.000.000 on April 1, 2019. In…
A: If a fixed asset is acquired, the cost spent on the acquisition of fixed assets is referred to as…
Q: Mazaya Company acquires land for RO 96,000 cash. Additional costs are as follows Removal of shed RO…
A: Acquisition cost of land = Purchase price + Removal of shed costs Filling and grading - Salvage…
Q: On December 1, 20120, Boyd Co. purchased a 400,000 tract of land for a factory site. Boyd razed an…
A: Introduction: The balance sheet is among the three basic financial statements that are required for…
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A: Lump-sum purchase: - Lump-sum purchase occurs when different assets or a group of assets are…
Q: Sheridan Company acquires land for $71000 cash. Additional costs are as follows. Removal of shed…
A: The cost of acquisition of land includes terms like Cash, Removal, Filling, Salvage, Broker…
Q: Unilever acquires land for $86,000 cash. Additional costs are as follows: removal of shed $300,…
A: As per IAS 16 property plant and equipment. Cost of equipment includes all costs that are incurred…
Q: 3. Purchased for P5,500,000, including appraiser fee of P100,000´a warehouse building and the land…
A: Lump-sum purchase of fixed asset When two or more fixed assets are purchased for a lump-sum(single…
Q: 5. In 2018. RIS Company paid P4.000.000 to purchase land containing a total estimated 160.000 tons…
A: In 2018, IRIS Company paid for purchase of land containing a extractable minerals = P4000000 Total…
Q: Cost of land site, which included an old apartment building appraised at $75,000 $173,000 Legal…
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A: total cost of lots = purchase of ground + appraiser of land + cost of manufacturing
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- Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cashThe following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?
- Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1. Acquired a more advanced machine worth 10,000 by paying 2,000 cash and giving up a machine that had originally cost 40,000 and has a book value of 12,000, 2. Acquired a building worth 55,000 by paying 5,000 cash and giving up a piece of land that had originally cost 35,000. 3. Acquired a more advanced machine worth 20,000 by paying 5,000 cash and giving up a machine that had originally cost 13,000 and has a book value of 11,000. 4. Acquired a car by giving up a truck that had originally cost 20,000, has a book value of 15,000, and has a blue book value of 16,800. In addition, the company received 1,000 cash. Required: Prepare Bremers journal entry for each exchange. Assume all exchanges were determined to have commercial substance.Expenditures After Acquisition Listed below are several transactions: a. Paid $80 cash to replace a minor part of an air conditioning system. b. Paid $40,000 to fix structural damage to a building. c. Paid $8,000 for monthly salaries. d. Paid $12,000 to replace a manual cutting machine with a computer-controlled machine. e. Paid $1,000 related to the annual painting of a building. Required: Classify each transaction as either a revenue expenditure, a capital expenditure, or neither.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
