Homework Answers
Basket Purchase price = $520,000
Market Value of Office Furniture = $120,000
Market Value of Building = $420,000
Market Value of Land = $90,000
Total Market Value of Assets = $120,000 + $420,000 + $90,000 = $630,000
Proportion of Basket Purchase price to be allocated to officce furniture = $120,000 / $630,000 = 0.190476 = 19.05%
Cost allocated to Office Furniture
= $520,000 * 19.05%
= $99,060
Correct Option: $99,060
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5 Chico Company paid $520,000 for a basket purchase that included office furniture, a building and...
o6 6 Help Save & Chico Company paid $610,000 for a basket purchase that included office...
o6 6 Help Save & Chico Company paid $610,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately. Office furniture - $165,000; Building - $510,000, Land - $135,000. Based on this Information, and rounding allocations to two decimal places, the amount of cost that would be allocated to the office furniture is closest to (Round your Intermediate percentages...
On January 1, 2016, Phillips Company made a basket purchase including land, a building and equipment...
On January 1, 2016, Phillips Company made a basket purchase including land, a building and equipment for $970,000. The appraised values of the assets are $70,000 for the land, $980,000 for the building and $200,000 for equipment Phillips uses the double declining balance method of depreciation for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. The depreciation expense for 2016 for the equipment is (Round your intermediate percentages to...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building,...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows: Land Building Furniture Total $180.000 300,000 120,000 $600,000 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building,...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building, land, and furniture for $604,200 cash. The appraised value of the assets was as follows: Land Building Furniture Total $101.506 196,244 378,954 $676, 704 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model like the following one: c. Prepare the general journal entry to record the purchase. Complete this question...
o6 6 Help Save & Chico Company paid $610,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately. Office furniture - $165,000; Building - $510,000, Land - $135,000. Based on this Information, and rounding allocations to two decimal places, the amount of cost that would be allocated to the office furniture is closest to (Round your Intermediate percentages...
On January 1, 2016, Phillips Company made a basket purchase including land, a building and equipment for $970,000. The appraised values of the assets are $70,000 for the land, $980,000 for the building and $200,000 for equipment Phillips uses the double declining balance method of depreciation for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. The depreciation expense for 2016 for the equipment is (Round your intermediate percentages to...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows: Land Building Furniture Total $180.000 300,000 120,000 $600,000 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount...
Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building, land, and furniture for $604,200 cash. The appraised value of the assets was as follows: Land Building Furniture Total $101.506 196,244 378,954 $676, 704 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model like the following one: c. Prepare the general journal entry to record the purchase. Complete this question...
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