If a company is considering the purchase of a parcel of land that was acquired by...
If a company is considering the purchase of a parcel of land that was acquired by the seller for $104,000 is offered for sale at $188,000, is assessed for tax purposes at $114,000, is considered by the purchaser as easily being worth $178,000, and is purchased for $175,000, the land should be recorded in the purchaser's books at: a,114000. b ,175000. c, 176500. c, 178000. d, 188000.
Homework Answers
Answer
--Correct Answer - Option 'B' $ 175,000
--Land should be recorded in the books of purchaser at the price paid by (or payable by) the purchase to acquire it, which in this case is equal to $ 175,000 (the land purchased for).
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If a company is considering the purchase of a parcel of land
that was acquired by...
If a company is considering the purchase of a parcel of land that was acquired by...
If a company is considering the purchase of a parcel of land that was acquired by the seller for $97,000, is offered for sale at $174,000, is assessed for tax purposes at $107,000, is recognized by the purchaser as easily being worth $164,000, and is purchased for $161,000, the land should be recorded in the purchaser's books at Multiple Choice $107,000. $161,000 $162,500. <Prev 11 of 39 Nexr
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...
QUESTION 2 if a company is considering the purchase of a parcel of land that was...
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99. Ifa parcel of land that is easily worth $160,000 is offered for sale at $120,000....
99. Ifa parcel of land that is easily worth $160,000 is offered for sale at $120,000. It is aessed for tax purposes at $100,000, and was originally purchased for $95,000. In compating the gain on the sale of the land to an unrelated party for $137,000, the seller had a tax basis in the land of A. $137,000. B. $95,000 C. $160,000 D. $160,000. E. $100.000. 100. A new HVAC system was purchased by Liv for $90,200. Liv hired a...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building 25,000 Equipment 45,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The truck is expected to have a $2,500 residual value and...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of e...
1. Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building 25,000 Equipment 45,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The truck is expected to have a $2,500 residual value and...
On January 1, 2017, Panther, Inc., issued securities with a total fair value of $588,000 for...
On January 1, 2017, Panther, Inc., issued securities with a total fair value of $588,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination. Although Stark's book value at the acquisition date was $322,000, the fair value of its trademarks was assessed to be $60,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its...
If a company is considering the purchase of a parcel of land that was acquired by the seller for $97,000, is offered for sale at $174,000, is assessed for tax purposes at $107,000, is recognized by the purchaser as easily being worth $164,000, and is purchased for $161,000, the land should be recorded in the purchaser's books at Multiple Choice $107,000. $161,000 $162,500. <Prev 11 of 39 Nexr
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...
QUESTION 2 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 595.000, is recognized 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 $140,000 5137,000 O $150,00 O 195.000 5138.500 QUESTION If a company purchases equipment costing 54,500 on credit, the effect on...
99. Ifa parcel of land that is easily worth $160,000 is offered for sale at $120,000. It is aessed for tax purposes at $100,000, and was originally purchased for $95,000. In compating the gain on the sale of the land to an unrelated party for $137,000, the seller had a tax basis in the land of A. $137,000. B. $95,000 C. $160,000 D. $160,000. E. $100.000. 100. A new HVAC system was purchased by Liv for $90,200. Liv hired a...
On January 1, 2017, Panther, Inc., issued securities with a total fair value of $588,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination. Although Stark's book value at the acquisition date was $322,000, the fair value of its trademarks was assessed to be $60,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its...
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