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 amount
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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 amount
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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 amountA company purchased land and building from a seller for $900,000. A separate appraisal reveals the fair value of the land to be $200,000 and the fair value of the building to be $800,000. For what amount would the company record land at the time of purchase? Multiple Choice $900,000. $200,000. $180,000. $220,000.How 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 building
- Required information Skip to question [The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above assets? Multiple Choice Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 4,620,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 735,000 Notes payable 3,885,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 1,735,000 Notes payable 735,000 Gain on purchase of long-term assets 2,150,000 Land 419,900…Entity R measures its non-current assets using the revaluation model. At 30 June 20x2, Entity R purchased a property for R100 000. The property was revalued at 30 June 20x6 to R250 000. The latest valuation report, dated 30 June 20x8, values the building at R95 000. Entity R has adjusted the building shown in non-current assets at 30 June 20x8.Calculate the debit entry in Entity R’s financial statements for the year ended 30 June 20x8Which 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.
- Carver Inc. purchased a building and the land on which the building is situated for a total cost of $922,800 cash. The land was appraised at $244,081 and the building at $817,139. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. 2. Record the purchase in a horizontal statements model.On 2 January 20.7, AC Entity commenced with activities and during January 20.7 the entity incurred the following transactions:1. On 2 January 20.7, the owner made the property that AC Entity utilises available for theexclusive use of the entity. The property was registered in the owner’s name a few days before2 January 20.7. The purchase price of the property was R1 200 000 (R200 000 for the land andR1 000 000 for the buildings).2. On 2 January 20.7, the owner opened a cheque account for the entity and deposited R1 800000 in the account.3. On 2 January 20.7, furniture and equipment to the amount of R225 000 was ordered. Thesupplier, Payable K, delivered the furniture and equipment on 5 January 20.7 to AC Entity’spremises. The invoice price is R225 000 and it was agreed with Payable K to pay the outstandingamount on 30 January 20.7.4. Trade inventories to the amount of R20 000 was ordered on 7 January 20.7 and it was agreedwith Payable L that the outstanding amount will be paid 30 days…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 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.
- 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…Assume a company pays delinquent property taxes totaling $3,000 as part of a new land purchase. The journal entry to record this payment should include a credit to “Cash” and a debit to: Land Property Taxes Payable Property Tax Expense Accumulated Depreciation Loss on Purchase of PropertyIsabela Company commercial operations at the beginning of the current year. The followingcosts are incurred by the entity during the current year:Option fee for land acquired 10, 000Option fee for land not acquired 10, 000Taxes in arrears on building on land 50, 000Payment for land 1, 000, 000Demotion of old building on land, net of salvage of P10, 000 100, 000Architect fee 230, 000Payment to city hall for approval of building construction 120, 000Contract price for factory building 5, 000, 000Safety fence around construction site 35, 000Safety inspection on building 30, 000Removal of safety fence after completion of factory building 20, 000New fence surrounding the factory 80, 000Driveways, parking bays and safety lighting 550, 000a. How much is the cost of Land?________________________b. How much is the cost of factory building?___________________________c. what is the rules in solving this problem?