WORKING NOTES: | |||
CALCULATION OF PROPORTIONATE % OF EACH ASSETS | |||
FAIR VALUE OF THE ASSETS | Fair Value | Proporation of each assets | |
Land | $6,75,000.00 | 45% | |
Building A | $3,00,000.00 | 20% | |
Building B | $5,25,000.00 | 35% | |
Total | $15,00,000.00 | 100% | |
SOLUTION: | |||
CALCULATION OF INITIAL VALUATION OF BUILDING AND LAND | |||
Lumpsum Price | X by Proportion % | Purchase Value | |
Land | $14,00,000 | 45% | $6,30,000 |
Building A | $14,00,000 | 20% | $2,80,000 |
Building B | $14,00,000 | 35% | $4,90,000 |
Total | $14,00,000 | ||
Answer = | |||
Land | $6,30,000 | ||
Building A | $2,80,000 | ||
Building B | $4,90,000 | ||
Total | $14,00,000 | ||
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,400,000....
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,300,000. According to independent appraisals, the fair values were $630,000 (building A) and $280,000 (building B) for the buildings and $490,000 for the land. Required: Determine the initial valuation of the buildings and the land. Initial Asset Valuation Building A Building B Land Total
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,600,000. According to independent appraisals, the fair values were $765,000 (building A) and $425,000 (building B) for the buildings and $510,000 for the land. Required:Determine the initial valuation of the buildings and the land.
Plnewood Company purchased two bulldings on four acres of land. The lump-sum purchase price was $2,400,000. According to Independent appralsals, the falr values were $1,125,000 (bullding A) and $500,000 (bullding B) for the bulldings and $875,000 for the land. Required Determine the initial valuation of the bulildings and the land. Initial Valuation Asset Land Building A Building E Total
5 points Save Answe Cantor Corporation acquired a manufacturing facility on four acres of land for a lump sum price of $8.350.000. The building included used but functional equipment According to independent appraisals, the fair values were $3.420,000, 4560,000 and $3.420,000 for the building, land and equipment, respectively. The initial values of the building and and equipment would be Building Land $ 3.420.00 Equipment $ 4560,0 $ 3.420.00 3420 000 $570,00 $ 45600 00 2.505.00 $ 3.340.0 $ 2.505 None...
1.A company acquired an office building on three acres of land for a lump-sum price of $2,900,000. The building was completely equipped. According to independent appraisals, the fair values were $1,840,000, $1,380,000, and $1,380,000 for the building, land, and equipment, respectively. At what amount would the company record the building? $1,860,000. None of these answer choices are correct. $1,160,000. $1,320,000. 2. A company purchased new equipment for $61,000. The company paid cash for the equipment. Other costs associated with the...
Rangers, Inc. purchased land, buildings and equipment at a lump-sum price of $1,000,000. An appraisal of the assets at the time of acquisition disclosed the following values: Asset Cost Assigned to Asset Appraised Value $240,000 Land Buildings 600,000 Equipment 360,000 Provide the cost assigned to each asset in the space provided.
Check Exercise 10-3 Acquisition costs; lump-sum acquisition (LO10-1, 10-2) Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes.for the period after acquisition State transfer tees $21,000 7.500 41,000 4,500 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.9 and $11...
Exercise 10-3 Acquisition costs; lump-sum acquisition (LO10-1, 10-2) Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $30,000 7.000 50.000 5,400 - An independent appraisal estimated the fair values of the land and building. If purchased separately, at $3 and...
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $ 21,000 Legal fees for drawing the contract 7,500 Pro-rated property taxes for the period after acquisition 41,000 State transfer fees 4,500 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.9 and $1.1 million, respectively. Shortly after acquisition, Samtech spent...
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $26,000 5,000 46,000 5,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8 million, respectively. Shortly after acquisition, Samtech spent $92,000...