Question

Matchett Machinery Ltd.

Matchett Machinery Ltd. acquired a new site for its manufacturing operations. The company was able to find the ideal location in terms of lot size and highway access. Matchett paid $ 3.1 million to acquire the site. The bank, which was providing Matchett with the financing for the purchase, required that an appraisal be completed of the property. The appraisal report came back with the following estimated market values: land $ 1,830,000, building $ 1,020,000, and land improvements $ 150,000. Matchett explained, to the bank's satisfaction, that it paid the $ 100.000 premium because of the savings it would realize from minimizing transportation distances given the site's superior highway access. 

Allocate the $3.1-million purchase price to the land, building, and land improvements. 

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 9 more requests to produce the answer.

1 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Matchett Machinery Ltd.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5,113,000, but...

    Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5,113,000, but Nordso was able to acquire it for $4,969,000. The bank, which was providing Nordso with the financing for the purchase, required that an appraisal be completed of the property. The appraisal report came back with the following estimated market values: land $1,643,747, building $2,987,243, and land improvements $458,010. Allocate the purchase price to the land, building, and land improvements. (Round allocation percentage to 1...

  • ANSWER WITH FULL STEPS ( URGENT) Application Problem 8-2B a1 Nordso Ltd. purchased a new warehouse....

    ANSWER WITH FULL STEPS ( URGENT) Application Problem 8-2B a1 Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5,380,000, but Nordso was able to acquire it for $5,230,000. The bank, which was providing Nordso with the financing for the purchase, required that an appraisal be completed of the property. The appraisal report came back with the following estimated market values: land $1,740,840, building $2,728,740, and land improvements $870,420. (21) Allocate the purchase price to...

  • SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...

    SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...

  • do SWOT analysis. CASE 01 Mystic Monk Coffee connect . David L. Turnipseed University of South...

    do SWOT analysis. CASE 01 Mystic Monk Coffee connect . David L. Turnipseed University of South Alabama . wishing to donate to the monks' cause. Father Prior Daniel Mary did not have a great deal of experience in business matters but considered to what extent the monastery could rely on its Mystic Monk Coffee operations to fund the purchase of the ranch. If Mys- tic Monk Coffee was capable of making the vision a reality, what were the next steps...

  • And there was a buy-sell arrangement which laid out the conditions under which either shareholder could...

    And there was a buy-sell arrangement which laid out the conditions under which either shareholder could buy out the other. Paul knew that this offer would strengthen his financial picture…but did he really want a partner?It was going to be a long night. read the case study above and answer this question what would you do if you were Paul with regards to financing, and why? ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with...

  • CASE 3.1 Eminent Domain SUSETTE KELO'S NONDESCRIPT, PINK CLAPBOARD Kil'I, MINK CLAPBOARD house sits above the...

    CASE 3.1 Eminent Domain SUSETTE KELO'S NONDESCRIPT, PINK CLAPBOARD Kil'I, MINK CLAPBOARD house sits above the Thames River in the Fort Trumbull area of New London, Connecticut. It's surrounded by vacant lots, where neighbors once lived. One by one, these neighbors have left, and their homes have been razed. Their property has been taken over by the City of New London, which has used its power of eminent domain to clear the land where dozens of homes once stood in...

  • How can we assess whether a project is a success or a failure? This case presents...

    How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...

  • CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...

    CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...

  • SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the...

    SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT