Solid Company purchased a plot of ground for P18 The entity also paid an independent appraiser for the land the amount of P500,000. The land was developed as residential lots at a total cost of P41,500,000. The lots were classified as follows: Number of lots Sales price per lot Highland Midland Lowland 20 1,000,000 750,000 500,000 40 100 Required: Compute the total cost of each lot classification.

Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…

A: Warehouse should be recorded at = Total amount paid x Current appraised value of warehouse / Total…

Q: Landmark Company purchased a tract of unimproved land for P26,850,000. The land was improved and…

A: Total Cost = P26,850,000+P43,500,000=P70,350,000 Total Number of lots = 20+10+10=40 Cost per lot =…

Q: Instructions: What is the cost allocated to grade C lots

A: Given,  Purchase cost of the land = 1500000 Subdivision in lots=               400 lots Selling…

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: Merchant Company purchased property for a building site. The costs associated with the property…

A: Total cost of land = Purchase price + Real estate commission + Legal fees + Expenses of clearing the…

Q: At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000.  The…

A: Total Sales:- It is the value of those goods which are ready for sale in the market including profit…

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: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Cost of Land = Purchase Price of Land + Legal Fees + Demolition of Old Building - Sale of scrap from…

Q: Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to…

A: Given information is: Teradene Corporation purchased land as a factory site and contracted with…

Q: Relative Sales Value Method: -- Apple Corporation purchased a track of unimproved land for $610,000.…

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional…

A: Cost of land = P12,000,000 Additional cost = P3,000,000 Total cost = P15,000,000

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: Carver Inc. purchased a bulkling and the land on which the bulldıng Is situated for a total cost of…

A: Answer --   Part B - Amount of Purchase cost to be allocated to Land and the amount to allocate the…

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Answer A: So, Alanna Co. should record the land in the books for $126,000.

Q: Kofkans company limited purchased land as a factory site and contracted with Maxtor Construction to…

A: Solution:

Q: Shoshin, Inc. owns land and building in Manila used for operations and administration. The company…

A: The question is related to  reclassification from owner-occupied property to investment property.

Q: Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for…

A: Capitalized cost of the land = Purchase price + Demolition costs of old building - Scrap sold +…

Q: Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the…

A: The question is related to Property, Plant and Equipment. The details of lump sum group purchase is…

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

A: Non-current assets: Non-current assets are the assets purchased not the purpose of resale. It's…

Q: Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised…

A: Plant assets: Plant assets refer to the fixed assets, having a useful life of more than a year that…

Q: As of December 31, 2022, 380 lots were sold and the market value of each lot had increased to…

A: When there is a transfer of inventories to investment property at fair value then the difference…

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: On 30 June 2021, Wheel Ltd opted to adopt the revaluation model to measu land. According to AASB116,…

A: Answer:-  AASB 116:- It is the accounting standard relating to the "Property, Plant &…

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

A:

Q: Coco de Coco Company acquired forest assets for a basket price of P 30,000,000 which is equal to the…

A: All biological asset be initially recorded in the books at the fair value less the cost to less of…

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: GGG Company purchased a tract of land for P12,000,000. The entity incurred additional cost of…

A: Cost allocation is based on the total sales value. The relative share can be calculated by dividing…

Q: Donner Company is selling a piece of land adjacent to its business premises.  An appraisal reported…

A: Historical cost principle: According to the principle of historical cost, the cost incurred to…

Q: Two independent companies, Ball and Brown, are in the home building business. Each owns a tract of…

A: Here given the details of the cost of the land and its difference in the Appraisal value of the land…

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: Doran Realty Company purchased a plot of ground for P800, 000 and spent P2, 100, 000 in developing…

A: Calculation of Total Revenue: Total revenue of Highland = no of lots x selling price.…

Q: ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the…

A: Lot A =    2,40,000   2,40,000/5,00,000 x 100 = 0.48 Lot B =    1,60,000   1,60,000/5,00,000 x 100 =…

Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…

A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…

Q: Merchant Company purchased land for a building site. The costs associated with the property were:…

A: The Costs associated with the property were include the all cost related to property to use.

Q: Tacloban Company incurred the following costs at the beginning of the current year: cost of land,…

A:

Q: On July 16, 20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a…

A: Cost principle: Under cost principle assets are recorded in books of accounts at the cost they are…

Q: Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase…

A:

Q: On July 16,20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a…

A: 1. According to GAAP, the land bought by Wyatt Corporation should be reported on the balance sheet…

Q: Determine the initial valuation of each of the assets Teradene acquired in the above transactions.…

A:

Q: Use the following information for the next two (2) questions: On April 1, 2022, Pacific Corporation…

A: Purchase price is allocated among the various acquired assets based on their fair market values. If…

Q: 1. In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply…

A: Inventoriable Cost  It is the total direct expense incurred related to the purchase of inventory.…

Q: On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional…

A: Given: Value of land= P 12,000,000 Additional cost incurred= P 3,000,000

Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…

A: Assets: Assets are the resources of an organization used in the business operations to generate…

Q: Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and…

A: cost of land purchased = cost of purchase and cost incurred for improvement = P5850000 + P80000  =…