Homework Answers
Solution 1:
Amount should be recorded for land = Purchase price + Commission + Property tax paid on behalf of seller + Title insurance
= $82,000 + $8,000 + $5,400 + $2,200 = $97,600
Hence 2nd option is correct.
Solution 2:
Cost recorded for equipment = Purchase price + Transportation + Sales tax + Installation cost
= $68,000 + $1,400 + $4,600 + $3,300 = $77,300
Hence last option is correct.
Solution 3:
Company cannot recognized any goodwill as these expenditure will be treated as expense in profit and loss statment as company has not purchase the goodwill. Internally generate goodwill is not recognized.
Hence first option is correct.
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Question 1) A company purchased land adjacent to its existing property to build a warehouse. The...
Question 1) A company purchased land adjacent to its existing property to build a warehouse. The company's maintenance crew and additional temporary employees built the warehouse. In addition, the company took out a $40,000 construction loan, which was repaid with a new loan after construction was completed. Which of the following statements is true? All costs associated with building the warehouse should be expensed as incurred. Materials costs should be capitalized to the building account, but all labor and interest...
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Which answer is correct? A company purchased property for $100,000. The property included a building, a...
Which answer is correct?
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A company purchased property for $100,000. The property included a building, equipment and land. The building...
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Accounting Practice Sunland Company purchases land for $185000 cash. Sunland assumes $5300 in property taxes due...
Accounting Practice
Sunland Company purchases land for $185000 cash. Sunland assumes $5300 in property taxes due on the land. The title and attorney fees totaled $2400. Sunland has the land graded for $4300. They paid $15000 for paving of a parking lot. What amount does Sunland record as the cost for the land? O $185000. $191700. $212000. $197000.
A company purchased land, a building, and equipment for one price of $1,600,000. The estimated fair...
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A company purchased new equipment for $68,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,400; sales tax paid $4,600; and installation cost, $3,300. The cost recorded for the equipment was: Multiple Choice $68,000 $69,400. $74,000. $77,300. A company purchased land for $82,000 cash. Commissions of $8,000, property taxes of $8,500, and title insurance of $2,200 were also incurred. The $8,500 in property taxes includes $5,400 in back taxes paid by the...
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $61.000; the land at $45,800, and the parking lot at $18,200. Land should be recorded in the accounting records with an allocated cost of Multiple Choice $42,640 $45,800. $100,000. $0 $36,640.
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to remove old building $ 188,000 16,300 2,100 3,300 2,300 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building? Multiple Choice O $212,000 to Land, 50 to Building O $206,400 to Land, $2.300 to...
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Which answer is correct?
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $53,500; the land at $51,800, and the parking lot at $19,700. Land should be recorded in the accounting records with an allocated cost of: Multiple Choice o $100,000. o $41,440. o $51,800. o $0. o $47,440.
Crane Company purchases land for $200000 cash. Crane assumes $5900 in property taxes due on the land. The title and attorney fees totaled $2300. Crane has the land graded for $4000. They paid $20000 for paving of a parking lot. What amount does Crane record as the cost for the land? O $206300. $212200 $232200. O $200000. Click if you would like to Show Work for this question: Open Show Work
Accounting Practice
Sunland Company purchases land for $185000 cash. Sunland assumes $5300 in property taxes due on the land. The title and attorney fees totaled $2400. Sunland has the land graded for $4300. They paid $15000 for paving of a parking lot. What amount does Sunland record as the cost for the land? O $185000. $191700. $212000. $197000.
A company purchased land, a building, and equipment for one price of $1,600,000. The estimated fair values of the land, building, and equipment are $200,000, $1,400,000, and $400,000, respectively. At what amount would the company record the land? Multiple Choice $160,000 o $170,000 $200,000 O $1,600,000 On July 1, 2021, Markwell Company acquired equipment. Markwell paid $195,000 in cash on July 1, 2021, and signed a $780,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022....
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