None Finley Company is looking for a new office location and sees a building with a fair value of $720,000. Finley also notices that much ofthe equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be$112,000. Finley offers to buy both the building and the equipment for $770,000, and the offer is accepted.Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round Intermediatecalculations.)BuildingEquipmentTotal

Step 1: Total fair value Total fair value = Fair value of the building + Fair value of the…

Answered: Finley Company is looking for a new…

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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Finley Company is looking for a new office location and sees a building with a fair value of $740,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $114,000. Finley offers to buy both the building and the equipment for $790,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round intermediate calculations.)
Finley Co. is looking for a new office location and sees a building with a fair value of $400,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $80,000. Finley offers to buy both the building and the equipment for $450,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment.
Pelé Corp. owns a popular convenience store in Washington state. Messi Corp. is hoping to purchase the store from Pelé for $8,500,000. Messi has identified the land and building have a fair value of $7,000,000 while inventory has a fair value of $700,000. Because of the store’s popularity, excellent customer service, and customer loyalty, Messi is willing to pay $800,000 above the fair value of the assets acquired in the purchase. If Pelé Corp. decides it will not accept anything less than $8,500,000, which Messi Corp. agrees to pay, how is the excess $800,000 payment accounted for? Excess Contributed Capital Plant, & Equipment Property, Plant, & Equipment Accumulated Deprecitation Accumulated Deprecitation
McClelland Corporation agreed to purchase some landscaping equipment from Agri-Products for a cash price of $500,000. Before accepting delivery of the equipment, McClelland learned that the same equipment could be purchased from another dealer for $460,000. To avoid losing the sale, Agri-Products has offered McClelland a “no interest” payment plan—McClelland would pay $100,000 at delivery, $200,000 one year later, and the final $200,000 in two years. Use the following links to the present value tables to calculate answers.(PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: McClelland would usually pay 9% annual interest on a loan of this type. What is the present value of the Agri-Products loan at the delivery date? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) What journal entry would McClelland make if it accepts the deal and buys from Agri-Products? (If no entry is required for a…
Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $8,500. The truck has a cost of $12,000 and a book value of $8,000 on Harmes’ books. Goodman agrees to pay $500 to complete the exchange. Required: Prepare journal entries for Goodman and Harmes to record the exchange. Prepare journal entries for Goodman and Harmes to record the exchange. Assume the exchange occurred on September 23. please only fill in the five availble lines. Thank you! GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5
Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $8,500. The truck has a cost of $12,000 and a book value of $8,000 on Harmes’ books. Goodman agrees to pay $500 to complete the exchange. Required: Prepare journal entries for Goodman and Harmes to record the exchange.
Mr. Sandro, a real estate developer, enters a contract with Arnold Reyes to sell a building for P1 million. Arnold intends to open a warehouse in the building for his sticky rice products. The building is in an area where new buildings face high levels of competition and Arnold has little experience in the rice treading industry. As a result, the contract price of P 100,000,000 is not probable as to its collectability. From the details above, can we account for the contract as a contract revenue from the customer?
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $232,000. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?
Safe Ladies' Home, Inc owns a three-storey building along Asturias. The whole building, divided into smaller rooms, is being rented out to various lady bed spacers comprising of students, reviewees and employees. The building cost is P5,000,000 with accumulated depreciation of PI,500,000 as of December 31, 2023. On this date, the building has a fair value of P5,500,000.A new building was constructed by another entity adjacent to the building of Safe Ladies' Home, Inc during 2023. Safe Ladies’ Home rented the fourth floor of the new building under operating lease and subleased the whole area to various bed spacers. At December 31, 2023, the fair value of this fourth floor is P2,000,000 and Safe Ladies’ Home chose to report it as an investment -property.At what total amount should Safe Ladies' Home report its investment property at December 31, 2023? a. P0 b. P3,500,000 c. P5,500,000 d. P7,500,000
Meeker Inc. trades its used machine for a new model at Grand Inc. The used machine has a book value of $8,000 (original cost of $12,000) and a fair value of $4,000. The new model lists for $15,000. Meeker gives Grand a trade-in allowance of $7,000 for the used machine, $3,000 more than its fair value. Prepare a journal entry for Meeker, assuming commercial substance.
What is the maximum price you would be willing to pay for the business? If an investor group purchased the restaurant near the campus for $255, 867 and the fair value of the assets they acquired was $202,000, identify the account along with its balance, that is used to record the additional amount paid over the fair value of the assets.
An entity has agreed in a directors’ meeting to sell a building and has tentatively started looking for a buyer for the building. The price of the building has been fixed at P6 and a surveyor has valued the building based on market prices at P5.6M. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be relocated until the new building has been found. Additionally, the entity is planning to sell part of its business and has actively marketed the business at a fair price but, before the business can be sold, government approval is required, and any sale requires government approval. This means that the sale time is difficult to determine and it may take longer than one year to sell the disposal group. Which of the statements are true? A.The building and the disposal group which is a part of their business can be classified as held-for-sale. B. The building and the…

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