Connect Access Card for Principles of Auditing & Other Assurance Services
Connect Access Card for Principles of Auditing & Other Assurance Services
21st Edition
ISBN: 9781260299366
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 13, Problem 26QRA
To determine

Explain whether the treatment of land and building is acceptable or not in the given case.

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During the year, Leak Construction Corp. distributed a crane used in its business to Q, who owns 100 percent of the stock. The crane was worth $10,000 and had a basis of $19,000. The corporation also distributed land worth $70,000, with a basis of $40,000. Leak will report
Laramie Corporation has acquired a property that included both land and a building for​ $590,000. The corporation hired an appraiser who has determined that the market value of the land is​ $350,000 and that of the building is​ $470,000. At what amount should the corporation record the cost of the​ building? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)
ABC Corporation accepted several office equipment from a stockholder which originally cost the donor 1,200,000. On the same date, the items had aggregated fair value totaling 985,000. The company incurred 30,000 for professional fees and transfer taxes related to the transaction. The amount was charged to other expenses. How much should be the credited as donated capital?

Chapter 13 Solutions

Connect Access Card for Principles of Auditing & Other Assurance Services

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