Plant acquisitions for selected companies are as follows. 1. Novak Industries Inc., acquired land, buildings, and equipment from a bankrupt company, Torres Co, for a lump-sum price of $1,050,000. At the time of purchase, Torres's assets had the following book and appraisal values. Land Buildings Equipment Book Values $300,000 375,000 450,000 Appraisal Values Land 225,000 Buildings 375,000 Equipment 450,000 Cash $225,000 525,000 450,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. 1,050,000 SUPPO
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- Plant acquisitions for selected companies are as follows.1. Bramble Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $756,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $216,000 $162,000 Buildings 270,000 378,000 Equipment 324,000 324,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 162,000 Buildings 270,000 Equipment 324,000 Cash 756,000 2. Sunland Enterprises purchased store equipment by making a $2,160 cash down payment and signing a 1-year, $24,840, 10% note payable. The purchase was recorded as follows. Equipment 29,484 Cash 2,160 Notes Payable 24,840 Interest Payable 2,484 3. Coronado Company purchased…Plant acquisitions for selected companies are as follows. 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $700,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land Buildings Equipment $200,0000 250,0000 300,0000 $150,00000 350,00000 300,00000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land Buildings Equipment Cash 150,000 250,000 300,000 700,000 2. Harry Enterprises purchased store equipment by making a $2,000 cash down payment and signing a 1-year, $23,000, 10% note payable. The purchase was recorded as follows. Equipment Cash Notes Payable Interest Payable 27,300 2,000 23,000 2,300 3. Kim Company purchased office equipment for $20,000, terms 2/10, n/30. Because…Plant acquisitions for selected companies are as follows. 1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 201,000 Buildings 335,000 Equipment 402,000 Cash 938,000 2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note payable. The purchase was recorded as follows. Equipment 36,582
- Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $765,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $199,000 $151,000 Buildings 241,000 350,000 Equipment 373,000 373,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 151,000 Buildings 241,000 Equipment 373,000 Cash 765,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique…
- Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $720,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $210,000 $140,000 Buildings 248,000 349,000 Equipment 332,000 332,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 140,000 Buildings 248,000 Equipment 332,000 Cash 720,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the…Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Basis $ 6,000,000 $ 14,000,000 Appraised Value $ 6,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: 1. Calculate the amount paid for goodwill. 2. Determine the financial statement effects of the acquisition. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Book Value $ 11,400,000 20,200,000 3,400,000 7,800,000 13,200,000 Assets Determine the financial statement effects of the acquisition. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answer in millions rounded to 1 decimal place. (i.e. 5,500,000 should be entered as 5.5). Accounts Payable Accounts Receivable Accumulated Depreciation Advertising Expense Fair Value $ 14,400,000 26,200,000 4,400,000 7,800,000 12,200,000 Balance Sheet Liabilities…
- Protex Inc. acquired land, buildings, and equipment from a bankrupt company, for a lump-sum price of $700,000. At the time of purchase, the assets had the following book and appraisal values.Book Values Appraisal ValuesLand $200,000 $300,000Buildings 450,000 250,000Equipment 300,000 250,000To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.Land 200,000Buildings 250,000Equipment 250,000Cash 700,0002. Apple Industries purchased store equipment by making a $10,000 cash down payment and signing a 2-year, $40,000, 8% note payable. The purchase was recorded as follows.Store Equipment 56,400 Cash 10,000Note Payable 40,000Interest Payable 6,4003. Cherry Company purchased office equipment for $50,000, terms 1/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was:Office Equipment 50,000Cash 49,500Purchase Discounts 5004. Bubble Inc. recently…homework i Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $846,300 cash. The land was appraised at $194,649 and the building at $778,596. Required: a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Check my work Record the purchase in a horizontal statements model. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and…Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding appraiser fee of P100,000, a warehouse building and the land on which it is located The land had an appraised value of P3,000,000 and original cost of P1,400,000 The building had an appraised value of P2,000, and original cost of P2,800,000 Purchased an office building and the land on which it is located for P7,500,000 and assumed an existing P2,500,000 mortgage For realty tax purposes, the property is assessed at P9.600,000,60\% of which is allocated to the land What is the total cost of building?