Question

Question 3 Saved Smith Corporation purchased land and a building on Oct. 30th, 2020 for $640,000....

Question 3 Saved Smith Corporation purchased land and a building on Oct. 30th, 2020 for $640,000. The fair value of the land is $170,000 while the fair value of the building is $510,000. For the journal entry to record this purchase what amount should the building be debited? Question 3 options: a) $480,000 b) $510,000 c) $160,000 d) $470,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Comment below if you have any query i will solve it asap !! thanks

0 0
Know the answer?
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
Similar Questions
A corporation purchased land, a building, and equipment for a total cost of $450,000. Fair market...
A corporation purchased land, a building, and equipment for a total cost of $450,000. Fair market values based on an appraisal were determined to be $120,000 for the land, $280,000 for the building, and $80,000 for the equipment. The journal entry to record this purchase would include which of the following: (Answer may be rounded) A a debit to land for $120,000 B a debit to building for $261,000 C a credit to cash for $480,000 D a debit to...
Bob the Builder purchased a land and building in Year 6 for $4,000,000. $1.6 million of...
Bob the Builder purchased a land and building in Year 6 for $4,000,000. $1.6 million of the purchase price was allocated to the land, and the balance to the building. At the time of the purchase it was estimated that the building would have a useful life of 40 years but no residual value. In Year 18 Bob exchanged the land and building for a piece of undeveloped land. The fair market value of the assets given up was estimated...
On January 1, 2020, Bona Vista Co. purchased land, a building, equipment, and tools for a...
On January 1, 2020, Bona Vista Co. purchased land, a building, equipment, and tools for a total price of $4,770,000, paying cash of $1,194,000 and borrowing the balance from the bank. The bank appraiser valued the assets as follows: $1,218,300 for the land; $1,375,500 for the building; $1,021,800 for the equipment; and $314,400 for the tools. Prepare the entry to record the purchase. (Do not round intermediate calculations.)
On April 1, 2020, Renfro Corporation purchased land, a building, and some equipment for $633,000. The...
On April 1, 2020, Renfro Corporation purchased land, a building, and some equipment for $633,000. The following information is available concerning the property purchased: Current Market Value Land ....................... 150,420 Building ................... 366,240 Equipment .................. ? Before the property could be used, Renfro had to spend $25,320 to renovate the building and $7,140 to put the equipment in working order. The cost that was assigned to the building totaled $379,800. Calculate the cost assigned to the equipment.
On January 1, 2020, Night’s Watch Industries purchased land with 2 buildings and equipment for a...
On January 1, 2020, Night’s Watch Industries purchased land with 2 buildings and equipment for a total cost of $4,165,000. The company planns to keep Building 1, however will demolish Building 2. The appraised value of each individual asset are shown in the table below. The cost to demolish building 2 is $95,000. Space has been provided below for your calculations (this is optional). Required Complete the table below to allocate the correct cost to each asset. Prepare the journal...
Hi, question. I have the purchase of Land, Building and machinary for a total cost of...
Hi, question. I have the purchase of Land, Building and machinary for a total cost of 550,000 Fair values are as follows Land - 320,000 Building - 200,000 Equipment - 80,000 Total -600,000 This was not a purchase of a business so therefore we can do a lump-sum acquisiton I have done the calcuations necesaary using the formula fair value of asset / total fair value multiplied by the total cost. My question is do we still add directly attributable...
Pitney Co. purchased an office building, land, and furniture for $776,300 cash. The appraised value of...
Pitney Co. purchased an office building, land, and furniture for $776,300 cash. The appraised value of the assets was as follows:      Land $ 139,113   Building 269,531   Furniture 460,812       Total $ 869,456 Required a. Compute the amount to be recorded on the books for each asset. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)          b. Record the purchase in a horizontal statements model like the following one: (Do not round intermediate calculations. Round your...
On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common stock of Melody Corporation...
On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common stock of Melody Corporation at a cost of $450,000. Melody Corporation had 400,000 shares of common stock outstanding. At the date of purchase, the book value of Melody’s net assets was $1,500,000. Book value and fair value of net assets were the same for all balance sheet items except for machinery and inventory. The fair value exceeded the book value by $100,000 for machinery and $20,000 for the...
On January 1, 2020, Marigold, Inc. purchased 9% bonds having a maturity value of $493,000 for...
On January 1, 2020, Marigold, Inc. purchased 9% bonds having a maturity value of $493,000 for $509,329.00. The bonds provide the bondholders with an 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2024, with interest receivable on January 1 of each year. Marigold, Inc. uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as...
June 30, 2020    A building that Big Company had purchased on January 1, 2016, for $...
June 30, 2020    A building that Big Company had purchased on January 1, 2016, for $ 10,000 was exchanged for another building owned by Other Company. Big Company exchanged its building and $1,000 cash for Other Company’s building. Big’s building had a fair value of $ 9,500 at the time of the exchange. Straight-line depreciation on the building with a 40-year useful life and no R.V. has been properly charged from Jan. 1, 2016 through Dec. 31, 2019. Both parcels...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT