Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair valuesof the land, building, and equipment are $231,000, $363.000, and $66,000, respectively, for a total estimated fair value of $660,000Required:Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipmentAllocationPercentageAmount of BasketPurchaseRecordedAmountEstimated Fair Value(LandBuldingEquipmentTotal

Non-current asset: It can be defined as the long term investment of the business and its value is…

Answered: Red Rock Bakery purchases land,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Percentage Amount of Basket Purchase Recorded Amount Estimated Fair Value Land % Building Equipment % Total $ ere to search ASUS
Red River Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair values of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment.
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000. However, the estimated fair values of the land, building, and equipment are $100,000, $260,000, and $40,000, respectively, for a total estimated fair value of $400,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $600,000. However, the estimated fair values of the land, building, and equipment are $175,000, $455,000, and $70,000, respectively, for a total estimated fair value of $700,000.Required:Determine the amounts Red Rock should record in the separate accounts for the land, thebuilding, and the equipment.
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $360,000. However, the estimated fair values of the land, building, and equipment are $115,000, $253,000, and $92,000, respectively, for a total estimated fair value of $460,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. Amount of Estimated Fair Allocation Recorded Basket Value Percentage Amount Purchase Land Building Equipment Total
Red Cedar Bakery purchases land, building, and equipment for a single purchase price of $500,000. However, the estimated fair values of the land, building, and equipment are $210,000, $330,000, and $60,000, respectively, for a total estimated fair value of $600,000 Required: Determine the amounts Red Cedar should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value $ Allocation Percentage % % % Amount of Basket Purchase Recorded. Amount $
Industrial Metals purchases land, building, and equipment together for $1.2 million. The estimated fair values of the land, buildings, and equipment are $500,000, $800,000, and $200,000, respectively. What amount should be recorded in the separate account for the land?
Lexington 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.
Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of the component of the purchase is given below: Land 85000 Building 155000 Equipment 460000 Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction.
Samtech Manufacturing purchased land and a 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 $ 25,000 9,500 45,000 4,900 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 $91,000 to construct a parking lot and $49,000 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 $340,000 and the salvaged materials were sold for $5,500. In addition, Samtech spent $88,000 clearing and grading the land in preparation for the…
Advanced Automotive pays $270,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $30,000, the building's current market value is $210,000, and the equipment's current market value is $60,000. Prepare a schedule allocating the purchase price of $270,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Prepare a schedule allocating the purchase price of $270,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Begin by preparing a schedule allocating the purchase price of $270,000. (Do not enter the % sign within the input fields of the Percentage of Total Market column.) Asset Land Building Equipment Total Market…
The property had been acquired on January 1, 2020 for a total of P7,600,000, made up of P6,900,000 paid to the vendor, P300,000 paid to the local authority as a property transfer reporting period. One investment property had a fair value investment property is fair value model at the end of each Paradise Company's accounting policy with respéct to reporting period. One investment property had a fair ch of P8,000,000 on December 31, 2020. The property had been acquired on January 1, 2020 for a tota of P7,600,000, made up of P6,900,000 paid to the vendo tax and P400,000 paid to professional advisers. The use life of the property is 40 years. What is the gain to be recognized for 2020 in respect of the investment property?

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