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 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 125.)
Allocated costs for:
Land
Building
Home Improvements
Homework Answers
| Title | Allocation of purchase price |
| Land | 1604987 |
| Building | 2916803 |
| Land improvements | 447210 |
| Total | 4969000 |
Workings:
| Title | Market values | Allocation % | Allocation of purchase price |
| Land | 1,643,747 | 32.3% | 1604987 |
| Building | 2,987,243 | 58.7% | 2916803 |
| Land improvements | 458,010 | 9.0% | 447210 |
| Total | 5,089,000 | 4969000 |
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Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5,113,000, but...
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ANSWER WITH FULL STEPS ( URGENT)
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Ivanhoe
Ltd.
Statement of Financial Position
December 31
Assets
2018
2017
Cash
$ 18,000
$ 39,000
Term deposits (maturing in 60
days)
0
41,000
Accounts receivable
78,000
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Inventory
104,000
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Buildings
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(191,000
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Equipment
104,000
74,000
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depreciation—equipment
(38,000
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Total assets
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Shareholders’ Equity
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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...
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I keep getting this question wrong, please help! FV=Fair
Value
Case 8-3 a x Your answer is incorrect. Try again. Maple Manufacturing Company recently purchased a property for use as a manufacturing facility. The company paid $949,000 for a building and four hectares of land. When recording the purchase, the company's accountant allocated $849,000 of the total cost to the building and the remaining $100,000 to the land. After some investigation and an independent appraisal, you determine that the building...
The comparative, unclassified statement of financial position
for Ivanhoe Ltd. shows the following balances at December
31:
Ivanhoe
Ltd.
Statement of Financial Position
December 31
Assets
2018
2017
Cash
$ 18,000
$ 39,000
Term deposits (maturing in 60
days)
0
41,000
Accounts receivable
78,000
41,000
Inventory
104,000
73,000
Land
185,000
230,000
Buildings
902,000
525,000
Accumulated
depreciation—buildings
(137,000
)
(191,000
)
Equipment
104,000
74,000
Accumulated
depreciation—equipment
(38,000
)
(19,000
)
Total assets
$1,216,000
$813,000
Liabilities and
Shareholders’ Equity
Accounts payable
$...
In October 2019, Old City Antiques onened a new checking account at Barnett Bank. The bank statement dated October 31, 2019, for Old City Antiques follows: Beginning Balance, October 1, 2019 Deposits and other credits Oct. 2 10 17 19 $36,000 800 14,000 52,000 450 50 103,300 20 24. EFT St. Augustine Hotel 31. Interest revenue Checks and other debits: Oct. 2 EFT to FPL (utilities) 6 Ck#325 10 Ck#327 10 Ck#326 27 Ck#329 27 EFT to ATT 28 Ck#340...
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