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
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.
Samtech Manufacturing purchased land and building for $3
million. In addition to the purchase price, Samtech...
Samtech Manufacturing purchased land and building for $3
million. In addition to the purchase price, Samtech made the
following expenditures in connection with the purchase of the land
and building:
Title insurance
$
35,000
Legal fees for drawing the
contract
9,500
Pro-rated property taxes for the
period after acquisition
55,000
State transfer fees
5,900
An independent appraisal estimated the fair values of the land and
building, if purchased separately, at $3.6 and $1.2 million,
respectively. Shortly after acquisition, Samtech spent...
5. A company
purchases land and a building on the land. The land is appraised at...
5. A company
purchases land and a building on the land. The land is appraised at
$50,000, and the building at
$250,000. If the cost of the property
is $264,000 in total, then the portion of the cost allocable to the
land is:
a.
$46,000 c.
$44,000
b. $52,000 d.
$58,000
6. J.R. Enterprises
purchases an oil well for $300 million. It is estimated that 5
million barrels can be extracted from the well and that the
estimated residual...
Samtech Manufacturing purchased land and building for $3
million. In addition to the purchase price, Samtech...
Samtech Manufacturing purchased land and building for $3
million. In addition to the purchase price, Samtech made the
following expenditures in connection with the purchase of the land
and building:
Title insurance
$
36,000
Legal fees for drawing the
contract
10,000
Pro-rated property taxes for the
period after acquisition
56,000
State transfer fees
6,000
An independent appraisal estimated the fair values of the land and
building, if purchased separately, at $3 and $1 million,
respectively. Shortly after acquisition, Samtech spent...
Samtech Manufacturing purchased land and building for $4
million. In addition to the purchase price, Samtech...
Samtech Manufacturing purchased land and building for $4
million. In addition to the purchase price, Samtech made the
following expenditures in connection with the purchase of the land
and building:
Title insurance
$
26,000
Legal fees for drawing the contract
5,000
Pro-rated property taxes for the period after acquisition
46,000
State transfer fees
5,000
An independent appraisal estimated the fair values of the land and
building, if purchased separately, at $3.2 and $1.8 million,
respectively. Shortly after acquisition, Samtech spent...
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?
Rodriguez Company pays $358,020 for real estate with land, land
improvements, and a building. Land is...
Rodriguez Company pays $358,020 for real estate with land, land
improvements, and a building. Land is appraised at $172,000; land
improvements are appraised at $64,500; and a building is appraised
at $193,500.
Required: 1. Allocate the total cost among the three assets. 2.
Prepare the journal entry to record the purchase.
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...
AFM Holdings Co. purchased 15 acres of land with an office
building and warehouse on it...
AFM Holdings Co. purchased 15 acres of land with an office
building and warehouse on it for $2,000,000. The assets were
appraised at: land $1,000,000, building $600,000, and warehouse
$900,000. The assets were carried on the seller's books at: land
$800,000, building $500,000, and warehouse $700,000. At what cost
should the purchasing company record each of the assets?
Land, Building, Warehouse:
a. $1,000,000, $600,000, $900,000
b. $800,000, $480,000, $720,000
c. $800,000, $500,000, $700,000
d. $1,000,000, $500,000, $500,000