Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and $800,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $240,000 for the equipment, $540,000 for the building, and $420,000 for the land. Prepare the entry to record the purchase of this property by Atchison Corporation. If an amount box does not require an entry, leave it blank

Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and $800,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $240,000 for the equipment, $540,000 for the building, and $420,000 for the land. Prepare the entry to record the purchase of this property by Atchison Corporation. If an amount box does not require an entry, leave it blank

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...

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Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?
Carver Inc. purchased a building and the land on which the building is situated for a total cost of $922,800 cash. The land was appraised at $244,081 and the building at $817,139. What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,710,000. Harding paid $455,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $481,000; Building, $1,430,000 and Equipment, $949,000. What journal entry would be used to record the purchase of the above assets? (Do not round intermediate calculations.)
Buckeye Co. purchased equipment, a building, and land for $500,000 ($200,000 in cash and $300,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $120,000 for the equipment, $270,000 for the building, and $210,000 for the land. Prepare the entry to record the purchase of this property by Buckeye Co.
Carver Inc. purchased a building and the land on which the building is situated for a total cost of $700,000 cash. The land was appraised at $320,000 and the building at $480,000. Required What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000. Required: 1. What cost should the company assign to the land, buildings, and equipment, respectively? 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $104,000, and $18,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $110,000, $106,000, and $15,000.
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000. Required: 1. What cost should the company assign to the land, buildings, and equipment, respectively? 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $105,000, and $19,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $113,000, $107,000, and $16,000, respectively. Prepare the journal entries that Garrett should make to value its property, plant, and equipment.
2. Prepare the journal entries that Garrett should make to value its property, plant, and equipment under IFRS on December 31. General Journal Instructions PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 4 5 6. 7 8
Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and $800,000 in notes). After the purchase, the property was appraised. Fair market values were determined to be $240,000 for the equipment, $540,000 for the building, and $420,000 for the land. Need: Journal entry to record the transaction. Journal entry amount (dr) amount (cr)
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000. Required: 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $105,000, and $19,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $113,000, $107,000, and $16,000, respectively. Prepare the journal entries that Garrett should make to value its property, plant, and equipment.
Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.
Tonto Company purchased all property for $280,000. The property included a building, equipment, and land. The building was appraised at $175,000, the land at $126,000, and the equipment at $49,000. Prepare the journal entry to record the property basket purchase.