Question

1.On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $795,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below:

Construction cost of new building	$	952,000​
Real estate and attorney fees		14,000​
Architect fees		78,000​
Cost to demolish old building		72,900​
Salvage recovery from old building		(10,000)	​

Which of the following are the capitalized costs of the land and the new building, respectively?

Group of answer choices

$795,000 and $1,106,900

$871,900 and $1,030,000

$809,000 and $1,092,900

$881,900 and $1,020,000

2.

Chico Company paid $550,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $135,000; Building, $450,000, and Land, $105,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to four decimal places: ie .054231 = 5.42%.)

Group of answer choices

$158,333

$107,635

$52,500

$135,000

3.

Anchor Company purchased a manufacturing machine with a list price of $99,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $5000. Anchor paid $7200 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $9400 for the first year of operations. What is the cost of the machine?

Group of answer choices

$102,020

$118,620

$109,220

$97,020

Answer 1

Hi