This principle requires a company to report its land at the amount the company paid to...
This principle requires a company to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount
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This principle requires a company to report its land at the
amount the company paid to...
The personal assets of the owner of a company will not appear on the company's balance...
The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline? Select one: a. Cost b. Economic Entity c. Monetary Unit Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount? Select one: a. Monetary Unit b. Cost c. Economic Entity Which principle/guideline allows a company...
No results Options Calculator Donner Company is selling a piece of land adjacent to its business...
No results Options Calculator Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $94,312. The Focus Company initially offered to buy the land for $109,130. The companies settled on a purchase price of $212,000. On the same day, another piece of land o the same block sold for $104,982. Under the cost principle, at what amount should the land be recorded in the accounting records...
Sondland, Inc. currently produces gadgets and is considering expanding its operations. The company owns land beside...
Sondland, Inc. currently produces gadgets and is considering expanding its operations. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land ten years ago at a cost of $352,000 and spent $35,000 on grading and excavation costs at that time. Today, the land is valued at $573,000. The company currently has some unused equipment that it currently owns with a current market value of $79,000. This equipment could be...
Describe the cost principle and discuss what happens if an asset like land has an increase...
Describe the cost principle and discuss what happens if an asset like land has an increase in the fair value. How would the company report the land? Describe the fair value principle and for what types of assets is the fair value principle used.Which measurement principle (cost or fair value) do companies use to record most assets?
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett...
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: 1. What cost should the company assign to the land, buildings, and equipment, respectively? 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,...
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett...
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: 1. What cost should the company assign to the land, buildings, and equipment, respectively? 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,...
Use the Dynamic Exhibit to answer the following questions. 1. When the amount paid for land...
Use the Dynamic Exhibit to answer the following
questions.
1. When the amount paid for land is $36,000 and the amount paid for expenses is $10,000, the balance in total assets after transaction (b) is46,000 x 2. When the amount paid for land is $36,000 and the amount paid for expenses is $18,000, the balance in total assets after transaction (b) is s 18,000 x 3. when the amount paid for land is $50,000 and the amount paid for expenses...
1. What is the amount of Net Sales that ABC would report on its Income Statement?...
1. What is the amount of Net Sales that ABC would report on its
Income Statement?
$3,000,000
$2,920,000
$3,200,000
$2,970,000
2. What is the amount of Gross Profit that ABC would report on
its Income Statement?
$1,300,000
$1,220,000
$1,500,000
$1,270,000
3. What is the TOTAL amount of Operating Expenses that ABC would
report on its Income Statement?
$506,000
$500,000
$554,000
$440,000
ABC Company has the following information available on December 31, 2017. The tax rate is 25% $6,000 Sales Salaries...
Sun Corporation concluded the fair value of Tender Company was $65,000 and paid that amount to...
Sun Corporation concluded the fair value of Tender Company was $65,000 and paid that amount to acquire its net assets. Tender reported assets with a book value of $54,000 and fair value of $68,000 and liabilities with a book value and fair value of $27,000 on the date of combination. Sun also paid $12,000 to a search firm for finder’s fees related to the acquisition. Required: Prepare the journal entries to be made by Sun to record its investment in...
20) If a company is considering the purchase of a parcel of land that was acquired...
20) If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at: A) $95,000 B) $137,000. C) $138,500. D) $140,000 E) $150,000 21) The rule that (1) requires revenue to be recognized when...
No results Options Calculator Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $94,312. The Focus Company initially offered to buy the land for $109,130. The companies settled on a purchase price of $212,000. On the same day, another piece of land o the same block sold for $104,982. Under the cost principle, at what amount should the land be recorded in the accounting records...
Use the Dynamic Exhibit to answer the following
questions.
1. When the amount paid for land is $36,000 and the amount paid for expenses is $10,000, the balance in total assets after transaction (b) is46,000 x 2. When the amount paid for land is $36,000 and the amount paid for expenses is $18,000, the balance in total assets after transaction (b) is s 18,000 x 3. when the amount paid for land is $50,000 and the amount paid for expenses...
1. What is the amount of Net Sales that ABC would report on its
Income Statement?
$3,000,000
$2,920,000
$3,200,000
$2,970,000
2. What is the amount of Gross Profit that ABC would report on
its Income Statement?
$1,300,000
$1,220,000
$1,500,000
$1,270,000
3. What is the TOTAL amount of Operating Expenses that ABC would
report on its Income Statement?
$506,000
$500,000
$554,000
$440,000
ABC Company has the following information available on December 31, 2017. The tax rate is 25% $6,000 Sales Salaries...
20) If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at: A) $95,000 B) $137,000. C) $138,500. D) $140,000 E) $150,000 21) The rule that (1) requires revenue to be recognized when...
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