The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of P20,000,000. At the time of acquisition, Oscar paid P240,000 to have the assets appraised. The appraisal disclosed the following values: Land............................................................ P12,000,000 Buildings......................................................... 8,000,000 Equipment...................................................... 4,000,000 What cost should be assigned to the land account?

The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of P20,000,000. At the time of acquisition, Oscar paid P240,000 to have the assets appraised. The appraisal disclosed the following values: Land............................................................ P12,000,000 Buildings......................................................... 8,000,000 Equipment...................................................... 4,000,000 What cost should be assigned to the land account?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

See similar textbooks

Similar questions

The Jacob Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $500,000. At the time of acquisition, Jacob paid $20,000 to have the assets appraised. The appraisal disclosed the following values: Land $100,000 Buildings 200,000 Equipment 300,000 What costs should be assigned to the buildings? $166,667 $173,333 $200,000 $260,000
Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values: Land $480,000 Buildings $384,000 Equipment $96,000 What cost should be assigned to the land, buildings, and equipment, respectively? $480,000, $384,000, and $96,000. $412,500, $330,000, and $82,500. $427,500, $342,000, and $85,500. $285,000, $285,000, and $285,000.
Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and $800,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $240,000 for the equipment, $540,000 for the building, and $420,000 for the land. Prepare the entry to record the purchase of this property by Atchison Corporation. If an amount box does not require an entry, leave it blank
ABC Ltd., a private company, can report in accordance with either ASPE or IFRS. On January 1, Year 1, it acquired an asset at a cost of $11.1 million, which will be amortized on a straight-line basis over an estimated useful life of 25 years. On January 1, Year 3, the company hired an appraiser, who determined the fair value of the asset (net of accumulated depreciation) to be $13.8 million. The estimated useful life of the asset did not change. Required: (a)Determine the depreciation expense recognized in Year 2, Year 3, and Year 4 under (i) The revaluation treatment allowed under IAS 16, and IAS 16 Year 2$ Year 3$ Year 4$ (ii) ASPE. ASPE Year 2$ Year 3$ Year 4$ (b) Determine the carrying amount of the asset under the two different sets of accounting requirements at January 2, Year 3; December 31, Year 3; and December 31, Year 4. Jan 2/Yr3 Dec31/Yr3 Dec31/Yr4 (c) Determine the differences in profit and…
PUP CAF Company acquired a property for speculation purposes with the intention of selling it at a higher price in the long-term. The property was acquired at a cash price of P3,000,000. The property has P100,000 unpaid real property tax assumed by PUP CAF Company. In addition, the company also paid the following transaction costs: broker’s commission of P20,000 and registration cost of P35,000. How much PUP CAF should record as Investment Property?
On October 1, 20X8, FLORIDA INC. acquired 100% of FLOUR CORP. for P280,000. On that date, the carrying values of FLOUR's assets and liabilities were P450,000 and P200,000, respectively. The fair values of FLOUR's assets and liabilities were P550,000 and P200,000, respectively. Additionally, FLOUR had identifiable intangible assets at the time of acquisition with a fair value of P60,000. What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?
SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair values were $1,800,000, $900,000, and $300,000 for the building, land, and equipment, respectively. The company recorded the building for $1,620,000. What was the total purchase cost for all three assets?
ABC Company acquired a property for speculation purposes with the intention of selling it at a higher price in the long-term. The property was acquired at a cash price of P3,000,000. The property has P100,000 unpaid real property tax assumed by ABC Company. In addition, the company also paid the following transaction costs: broker's commission of P20,000 and registration cost of P35,000. How much ABC should record as Investment Property?
On January 1, 20X1, the Knight Corporation acquired 80% of the Red Company’s voting stock for $1,500,000. Red’s net assets had a book value of $1,350,000; the fair value of Red’s land was $325,000 greater than its book value. The book value of Knight’s assets immediately after the acquisition of Red totaled $6,850,000 while Red’s assets had a book value of $1,350,000. What was the amount of goodwill reported on the January 1, 20X1 consolidated balance sheet? Multiple Choice $525,000 $200,000 $160,000 $42,000
ABC Compant purchased an investment property on July 1, 2016 for P4,200,000. The property had a useful life of 35 years and on December 31, 2021 had a fair valye of P3,000,000. On December 31, 2021, the property was sold for net proceeds of P3,100,000. The entity used the cost model to account for the investment property. How much is the gain (loss) to be recognized for the year ended December 31, 2021 regarding the disposal of the property. a. (540,000) b. 440,000 c. (100,000) d. (440,000)
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000. Required: 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $105,000, and $19,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $113,000, $107,000, and $16,000, respectively. Prepare the journal entries that Garrett should make to value its property, plant, and equipment.
On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?