Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was Ghc900,000. According to independent appraisals, the fair values were Ghc450,000 (building A) and Ghc250,000 (building B) for the buildings and Ghc300,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Q: On January 1, 2020, Scholastic Company acquired a building to be held as investment property in a…
A: In order to determine the carrying value of the building the accumulated depreciation is required to…
Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…
A: Computation of the Intial value of the patent is as follows :
Q: A company purchased land and building from a seller for $900,000. A separate appraisal reveals the…
A: Formula: Land would be recorded at =[ total amount paid × appraisal value of land/total appraisal…
Q: Johnson acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land…
A: Johnson acquired a piece of land and building = P6000000 Fair value of land = $4200000 Building =…
Q: Sisig Corp. purchases a building with land at a cost of P100,000,000. In the sale and purchase…
A: Investment property is the capital assets that are used to earn rental income or capital…
Q: Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the…
A: Total fir value = land's fair value + building’s fair value + equipment’s fair value = $75,000 +…
Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…
A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…
Q: Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse…
A: Appraised Value: It is an evaluation of a property's value (Eg:Land, Warehouse) based on a given…
Q: Barney Stinson purchased land and a building for his new men’s clothing store. The price paid was…
A: Historical cost of the building = Total Purchase cost for land and a building x fair value of the…
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $360,000.…
A: The fair value of an asset is the estimated price of the asset at which the asset can be sold in the…
Q: At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.…
A: Cost allocation is a method of allocating or assigning the total cost to the individual object as…
Q: Carver Inc. purchased a bulkling and the land on which the bulldıng Is situated for a total cost of…
A: Answer -- Part B - Amount of Purchase cost to be allocated to Land and the amount to allocate the…
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000.…
A: Allocation Percentage = (Estimated Fair Value of standalone asset /Total Estimated Fair Value)*100…
Q: Coopers Industries purchased a block of land for use in its activities on January 1, 2019, by paying…
A: Appraisal prices are a subset of fine manipulate costs. Appraisal fees are paid through agencies as…
Q: Johnson acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…
Q: Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the…
A: cost of land = cost of land and warehouse purchased + brokers commission + title insurance +…
Q: Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding…
A: SOLUTION- LAND IS A NON CURRENT TANGIBLE FIXED ASSETS WHICH REPRESENTS THE REAL ESTATE OWNED BY THE…
Q: Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was…
A: Initial value of land and buildings shall be allocated based on their proportion of fair values.
Q: Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised…
A: Plant assets: Plant assets refer to the fixed assets, having a useful life of more than a year that…
Q: Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was…
A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…
Q: On June 1, 2022, Levine Company purchased three machines for $540, 000. The following information is…
A: Calculation of book value of the machine C as on December 31,2028::: Depreciation Expense=(Cost of…
Q: SEASH, Inc. acquired an office building, land, and equipment in a single basket purchase. The fair…
A: Introduction: - The total purchase cost for all three assets is obtained using the proportion method…
Q: Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment…
A: The cost can be allocated on the basis of the following formula = Lumsum amount / Total fair value…
Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…
A: 1.
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000.…
A: Non-current asset: It can be defined as the long term investment of the business and its value is…
Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…
A: Given, Amount paid for acquiring and = $200,000 Amount paid for an appraisal = $20,000 Land cost =…
Q: Coco de Coco Company acquired forest assets for a basket price of P 30,000,000 which is equal to the…
A: All biological asset be initially recorded in the books at the fair value less the cost to less of…
Q: On April 1, Bramble Corp. purchased for $1629000 a tract of land on which a warehouse and office…
A: Given, Total purchase cost of assets = $1,629,000 Total current assessed valuation = $1,800,000
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $600,000.…
A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…
Q: On November 5, 2020, BLUE Company purchased a land and a building for a lump-sum amount of 5,500,000…
A: Fair value is the amount paid or payable for the acquisition of goods or services or price paid for…
Q: On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.…
A: Land is not a depreciable asset , therefore no depreciation will be charged on Land . As per…
Q: On November 5, 2020, BLUE Company purchased a land and a building for a lump-sum amount of…
A: Total fair values of the land and building = ₱1,100,000 + ₱1,650,000 = ₱2,750,000
Q: How much is the loss on the retirement of the old building? b. What would be the capitalized cost…
A: Depreciation is an accounting method where a fund is kept aside so that once the asset becomes…
Q: ABC purchased a plant, including land, building and machinery, for P110,000. These items were…
A: Total appraisal value of assets = Land + building + machinery = P30000+45000+75000 = P150,000
Q: ABC acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and…
A: A capitalized cost is treated as an expense for a company that is shown in the cost basis of a long…
Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…
A: 1. Calculation of Initial Valuation: Total Purchase price = Land and Building Purchase Cost + Title…
Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…
A: Fixed assets are the long-term assets that are used by the firm in the manufacturing of goods and…
Q: On November 5, 2020, BLUE Company purchased a land and a building for a lump-sum amount of…
A: For accounting purpose Land and Building are treated as separate assets so the amount paid in lump…
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000.…
A: Red Rock Bakery purchased land, building & equipment all for $300,000 and the fair values of…
Q: Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price,…
A: 1. Value to be capitalized: Purchase Price $3,000,000 Title Insurance $23,000 Add: Legal fees…
Q: Barbosa Ltd purchased an item of plant for GHS 300,000 which was to be depreciated over its useful…
A: SOLUTION- GIVEN, ASSUME ON 1 JAN 20X1 ,BARBOSA LTD PURCHASED AN ITEM OF PLANT FOR GHS 300000 WHICH…
Q: ABC acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and…
A: The following calculations are done for ABC Company.
Q: Use the following information for the next two questions: On January 1, 20x1, Entity A acquires a…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: The Chicago Corporation acquired a piece of land in a business combination transaction from the…
A: Fair value definition as per IFRS 13 The price that would be received to sell an asset in an…
Q: In 2018, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: On January 01, 2020, Sisig Corp. acquired an investment property, and the initial cost of the…
A: The investment property refers to the investment that is either used for capital appreciation or for…
Q: Solid Company purchased a plot of ground for P18 The entity also paid an independent appraiser for…
A: total cost of lots = purchase of ground + appraiser of land + cost of manufacturing
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was Ghc900,000. According to independent appraisals, the fair values were Ghc450,000 (building A) and Ghc250,000 (building B) for the buildings and Ghc300,000 for the land.
Required:
Determine the initial valuation of the buildings and the land.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land. Required: Determine the initial valuation of the buildings and the land. 000 down and signed aLexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Prepare a schedule allocating the purchase price of$280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The businesssigns a note payable for the purchase price.Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be: Building Land Fixtures a. $ 880,000 $ 1,320,000 $ 2,200,000 b. $ 570,000 $ 855,000 $ 1,425,000 c. $ 855,000 $ 570,000 $ 1,425,000 d. None of these answer choices are correct. Option B Option C Option D Option A
- Fresh Veggies, Incorporated (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 cost of the land and record the purchase (assuming cash was paid for all expenditures). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of the land. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general JournalSamtech Manufacturing purchased land and a 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. Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $ 23,000 8,500 43,000 4,700 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively. Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the…Solid Company purchased a plot of ground for P18,000,000. The entity also paid an independent appraiser for the land the amount of P500,000. The land was developed as residential lots at a total cost of P41,500,000. The lots were classified as follows: Number of lots Sales price per lot Highland Midland Lowland 20 40 1,000,000 750,000 500,000 100 Required: Compute the total cost of each lot classification.
- On April 1, Proton Corporation purchased for P855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land P300,000 P280,000 Warehouse 200,000 180,000 Office building 340,000 P900,000 P800,000 What are the appropriate amounts that Proton should record for the land, warehouse, and office building, respectively? O Land, P299,250; warehouse, P192,375; office building, P363,375. O Land, P300,000; warehouse, P200,000; office building, P400,000. O Land, P280,000; warehouse, P180,000; office building, P340,000. O Land, P285,000; warehouse, P190,000; office building, P380,000. 400,000Schwartzkopf Co. purchased for $2,200,000 propertythat included both land and a building to be used inoperations. The seller’s book value was $300,000 for theland and $900,000 for the building. By appraisal, the fairvalue was estimated to be $500,000 for the land and$2,000,000 for the building. At what amount shouldSchwartzkopf report the land and the building at theend of the year?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 Legal fees for drawing the contract Pro-rated property taxes for the period after the acquisition State transfer fees $16,000 5,000 36,000 4,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. Shortly after the acquisition, Samtech spent $82,000 to construct a parking lot and $40,000 for landscaping. Required: Determine the initial valuation of each asset Samtech acquired in these transactions.
- Soccer Wholesale purchased land and a warehouse for one price of $850,000. In addition to the purchase price, Soccer Wholesale makes the following expenditures related to the acquisition: broker's commission, $44,400; title insurance, $2,800; and miscellaneous closing costs, $7,300. The warehouse is immediately demolished at a cost of $83,900 in anticipation of building a new warehouse. Determine the amount Soccer Wholesale should record as the cost of the land. Cost of the land1. Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $75,000, the building’s fair value is $60,000, and the equipment’s fair value is $15,000. Journalize the lump-sum purchase of the three assets for a total cost of $140,000. Assume you sign a note payable for this amount. Show all steps please.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 Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $16,000 5,000 36,000 4,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. Shortly after acquisition, Samtech spent $82,000 to construct a parking lot and $40,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Repeat requirement 1, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $250,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new…