the following items is classified as PPE? a. Land being sold in the ordinary course of business b. Land held for an determined future use c. Building used for rental purposes d. Equipment leased with 1.5 estimat
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Which of the following items is classified as PPE?
a. Land being sold in the ordinary course of business
b. Land held for an determined future use
c. Building used for rental purposes
d. Equipment leased with 1.5 estimated useful life having $5,000 amount
Step by step
Solved in 2 steps
- Which of the following items is classified as PPE? Land being sold in the ordinary course of business Land held for an determined future use Building used for rental purposes Equipment leased with 1.5 estimated useful life having $5,000 amountHow should the following expenditures and receipts related to land, land improvements, and buildings acquired for use in a business enterprise be classified? 1. Money borrowed to pay building contractor 2. Payment for construction from note proceeds 3. Cost of land fill and clearing 4. Delinquent real estate taxes on property assumed AUDPRO2 32 Exercise 1 5. Premium on 6-month insurance policy during construction 6. Architect’s fee on building 7. Cost of real estate purchased as a plant site (land, P2,000,000; building, P500,000) 8. Commission fee paid to real estate agency 9. Installation of fences around property 10. Cost of razing and removing buildinga. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. b. Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of the accounting equation be affected? Answer sub-part b alone.
- Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a component of property and equipment on the balance sheet.A company purchased a property for 100,000. The property included a building, a parking lot, and land. the building was appraised at 52,500 the land at 52,600 and the parking lot at 19,900. land should be recorded in the accounting records with an allocated cost of?The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,600 ) (b) Payment for construction from note proceeds 294,600 (c) Cost of land fill and clearing 10,250 (d) Delinquent real estate taxes on property assumed by purchaser 7,170 (e) Premium on 6-month insurance policy during construction 11,100 (f) Refund of 1-month insurance premium because construction completed early (1,850 ) (g) Architect’s fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $208,600 and building $51,900) 260,500 (i) Commission fee paid to real estate agency 9,500 (j) Installation of fences around property 4,120 (k) Cost of razing and removing building 10,230 (l) Proceeds from salvage of…
- The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,600 ) (b) Payment for construction from note proceeds 294,600 (c) Cost of land fill and clearing 10,250 (d) Delinquent real estate taxes on property assumed by purchaser 7,170 (e) Premium on 6-month insurance policy during construction 11,100 (f) Refund of 1-month insurance premium because construction completed early (1,850 ) (g) Architect’s fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $208,600 and building $51,900) 260,500 (i) Commission fee paid to real estate agency 9,500 (j) Installation of fences around property 4,120 (k) Cost of razing and removing building 10,230 (l) Proceeds from salvage of…The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(292,600 ) (b) Payment for construction from note proceeds 292,600 (c) Cost of land fill and clearing 11,790 (d) Delinquent real estate taxes on property assumed by purchaser 7,630 (e) Premium on 6-month insurance policy during construction 11,040 (f) Refund of 1-month insurance premium because construction completed early (1,840 ) (g) Architect’s fee on building 25,450 (h) Cost of real estate purchased as a plant site (land $200,400 and building $52,600) 253,000 (i) Commission fee paid to real estate agency 8,320 (j) Installation of fences around property 3,930 (k) Cost of razing and removing building 11,710 (l) Proceeds from salvage of…The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(290,400 ) (b) Payment for construction from note proceeds 290,400 (c) Cost of land fill and clearing 11,780 (d) Delinquent real estate taxes on property assumed by purchaser 7,360 (e) Premium on 6-month insurance policy during construction 11,340 (f) Refund of 1-month insurance premium because construction completed early (1,890 ) (g) Architect’s fee on building 25,930 (h) Cost of real estate purchased as a plant site (land $207,300 and building $57,700) 265,000 (i) Commission fee paid to real estate agency 9,860 (j) Installation of fences around property 3,860 (k) Cost of razing and removing building 10,800 (l) Proceeds from salvage of…
- a) Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business recieves an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased? b) Assuming that the land acquired in (a) was sold for $2,125,00, how would the various elements of the accounting equation be affected?Indicate (by choosing the appropriate letter) whether each of the following would be reported in the section of financial statements identified as: (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, (e) expense, or (f) long-term liabilities. (An item may be used multiple times) (1) ____ Accumulated depreciation-Truck (2) ____ Rent expense (3) ____ Fees earned (4) ____ Salaries payable (5) ____ Prepaid rent (6) ____ Store supplies (7) ____ Advertising expense (8) ____ Unearned rent (9) ____ Note payable (all of it is due in 2025) (10) ____ TruckThe following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(282,600) (b) Payment for construction from note proceeds 282,600 (c) Cost of land fill and clearing 11,200 (d) Delinquent real estate taxes on property assumed by purchaser 8,870 (e) Premium on 6-month insurance policy during construction 10,260 (f) Refund of 1-month insurance premium because construction completed early (1,710) (g) Architect’s fee on building 25,770 (h) Cost of real estate purchased as a plant site (land $207,200 and building $52,900) 260,100 (i) Commission fee paid to real estate agency 9,490 (j) Installation of fences around property 4,130 (k) Cost of razing and removing building 9,910 (l) Proceeds from salvage…
