ZuoTi.Pro
Question

The city of Anchorage sold land for its appraised value to the Big Bear Oil Company...

The city of Anchorage sold land for its appraised value to the Big Bear Oil Company on June 1, 2014, that originally cost the city $950,000. On June 1, 2014, the land was appraised at a value of $1,400,000, and on December 31, 2014, the land's value was estimated to be $1,450,000. On Big Bear Oil Company's balance sheet at December 31, 2014, the land should be valued at

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

Land should be valued at $1400000 .

Appraised value is evaluated by professional appraiser at a given point of time.Estimated value is the market value.Appraised value is deduced by considering several factors like value of properties of similar size and location , layout, parking lot .Value determined by professional for loan purpose.So appraised value should be considered for Balance Value at year end.

0 0
Add a comment
Know the answer?
Add Answer to:
The city of Anchorage sold land for its appraised value to the Big Bear Oil Company...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Name: 5) A company paid $1 54,000 for a property. The property included land appraised at...

    Name: 5) A company paid $1 54,000 for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. How should the purchase cost be allocated in the company's accounting records between land, land improvements, and the building? (No journal entry is required) Account Land Land Improvements Building Total Appraised Value $87,500 $35,000 $52,500 $175,000 Balance Sheet Balances 3080 8 46200 $154.000 97500 175,0e

  • 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...

  • CASE Aya Land Real Estate Recapitalization Aya Land Real Estate Company was founded 25 years ago...

    CASE Aya Land Real Estate Recapitalization Aya Land Real Estate Company was founded 25 years ago by the current CEO, Zaw Aya Land. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past 18 years, and the shareholders are satisfied with the company's management. Prior to founding Aya Land Real Estate, Zaw was the founder and CEO of a failed alpaca farming operation. The...

  • the convertible bond was issued on january 2, 2020 with a face value of 5,000,000, a term of 10 years, and it pays inter...

    the convertible bond was issued on january 2, 2020 with a face value of 5,000,000, a term of 10 years, and it pays interest each june and december 31 at an annual rate of 4%. the company received 4,600,000 cash; the cash was later used to acquire land and buildings on july 1, 2020 valued at 1,400,000 and 3,200,000 respectively. The remaining 400,000 of convertible bonds was also issued on January 2, 2020, in exchange for equipment valued at $400,000....

  • Please show work Balance at Dec 2020 ($) Land Land Improvement Buildings Equipments   Selected accounts included...

    Please show work Balance at Dec 2020 ($) Land Land Improvement Buildings Equipments   Selected accounts included in the property, plant, and equipment section of Lobo Corporation's balance sheet at December 31, 2019, had the following balances. Land Land improvements Buildings Equipment $300,000 140,000 1,100,000 960,000 During 2020, the following transactions occurred. 1. A tract of land was acquired for $150,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company...

  • Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1,...

    Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1, 2008. At that date, the fair value of the non-controlling interest was equal to 10 percent of the book value of Salt Company. Salt Co. sold equipment to Pepper Co. for a $360,000 on December 31, 2008. Salt Co. had originally purchased the equipment for $400,000 on January 1, 2005, with a useful life of 10 years and no salvage value. At the time...

  • Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1,...

    Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1, 2008. At that date, the fair value of the non-controlling interest was equal to 10 percent of the book value of Salt Company. Salt Co. sold equipment to Pepper Co. for a $360,000 on December 31, 2008. Salt Co. had originally purchased the equipment for $400,000 on January 1, 2005, with a useful life of 10 years and no salvage value. At the time...

  • Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1,...

    Pepper Company acquired 90 percent of Salt Company's stock at underlying book value on January 1, 2008. At that date, the fair value of the non-controlling interest was equal to 10 percent of the book value of Salt Company. Salt Co. sold equipment to Pepper Co. for a $360,000 on December 31, 2008. Salt Co. had originally purchased the equipment for $400,000 on January 1, 2005, with a useful life of 10 years and no salvage value. At the time...

  • At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings...

    At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $60,400,000 Accumulated depreciation—equipment 53,500,000 Buildings 97,600,000 Equipment 150,000,000 Land 21,850,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions...

  • Renner Company sold land to Bethany Enterprises, its parent, on June 1, 2020. The sale price...

    Renner Company sold land to Bethany Enterprises, its parent, on June 1, 2020. The sale price was $218,000. The land originally cost Renner $239,000. Renner reported net income of $400,000 and $496,000 for 2020 and 2021, respectively. Bethany sold the land it purchased from Renner for $228,000 in 2022. What is the balance in the pre-consolidation Income (loss) from Subsidiary account for 2020? a. 379,000 b.400,000 c. 411,000 d. 421,000 I got answer D but not sure if its right....

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