Question

A company purchased property for $294000. The property included an acre of land valued at $40000,...

A company purchased property for $294000. The property included an acre of land valued at $40000, a building valued at $148000, and equipment valued at $132000. The building will be recorded at a cost of (Round intermediate calculation to 3 decimal places and final answer to 0 decimal places. e.g. 1,250.)

$146000.

$162000.

$280000.

$135975.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Cost of property = 294,000

Total value of property = Value of land + Value of building + value of Equipment

= 40,000 + 132,000 + 148,000

= $320,000

Amount of discount received

= ( Value of property- cost of property)/ Value of property

= (320,000 - 294,000)/320,000

= 8.125%

Therefore the building will be recorded at cost of

Discount = 148,000*8.125% = $12,025

Cost = 148,000 - 12,025

= $ 135,975

Therefore the correct option is 4th.

If you find the answer helpful please upvote.

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
Larkspur Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600....
Larkspur Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600. The estimated fair values of the assets are land $74,400, building $272,800, and equipment $99,200. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.) Recorded Amount Land $enter a dollar amount rounded to 0 decimal places Building $enter a dollar amount rounded to...
SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building...
SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be: $40,000. $34,783. $36,364. $48,696. $56,522.
A company purchased a 3-acre tract of land for a building site for $440,000. The company...
A company purchased a 3-acre tract of land for a building site for $440,000. The company demolished the old building at a cost of $21,000, but was able to sell scrap from the building for $2400. The cost of title transfer was $1350 and attorney fees for reviewing the contract was $680. Property taxes paid were $7500, of which $700 covered the period after the purchase date. The capitalized cost of the land is: $469,180. $468,930. $467,430. $333,930.
Manning Company purchased a factory for $120,000. The factory included land, a building, and equipment. The...
Manning Company purchased a factory for $120,000. The factory included land, a building, and equipment. The land contributes 40.8%, the building contributes 49.6%, and the equipment contributes 9.6% of the factory’s value. How much of the cost should be assigned to the building?
1) Minor Company purchased land which is being prepared for the construction of a new office...
1) Minor Company purchased land which is being prepared for the construction of a new office building. Which of the following should be included in the cost of the land? A) cost of removing an old building B) cost of clearing and grading the land C) cost of the fence which surrounds the property D) A and B 2) Land, a building and equipment are acquired for a lump sum of $800,000. The market values of the land, building and...
Humphrey Company purchased a property (including land and building). The company acquired the property in exchange...
Humphrey Company purchased a property (including land and building). The company acquired the property in exchange for a 15-year mortgage for $1,800,000. Their insurance company appraised the components as follows: Land $ 400,000 Building 1,400,000 Parking lot 200,000 What should be the cost basis for the building? Select one: A. $1,244,444 B. $1,400,000 C. $1,200,000 D. $1,260,000
Tiger Industrial Inc. purchased a 20 acre tract of land and two buildings (building #1 and...
Tiger Industrial Inc. purchased a 20 acre tract of land and two buildings (building #1 and building #2) for $1,000,000. The market value of the land is $700,000 and the market value of building #1 is $350,000. Building #2 was condemned and had no market value. The company plans to raze Building #2 and construct a new building (Building #3) on the site. In addition to the purchase price, the company made (received) the following expenditures (income) in the fiscal...
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.)
Use the following to answer questions 1 – 4 J&T Company purchased land as a factory...
Use the following to answer questions 1 – 4 J&T Company purchased land as a factory site.  An old building on the property was demolished, and construction began on a new building.  Costs incurred during the first year are listed below: Land purchased as a factory site $450,000 Building construction costs 1,750,000 Interest cost related to the construction 80,000 Demolition of old building 45,000 Title investigation of land 11,000 Property taxes on land (past due for last year) 5,700 Property taxes on...
Vaughn Realty Corporation purchased a tract of unimproved land for $104,500. This land was improved and...
Vaughn Realty Corporation purchased a tract of unimproved land for $104,500. This land was improved and subdivided into building lots at an additional cost of $65,474. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of Lots Price per Lot 1 9 $5,700 2 15 7,600 3 17 4,560 Operating expenses for the year allocated to this project total $34,580. Lots unsold at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT