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?

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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...

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The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.
Reward Company made the following acquisitions during the year as follows; Purchased for P5,400,000, including appraiser fee of P50,000, a warehouse building and the land on which it is located. The land had an appraised value of P2,000,000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of PP2,800,000. Purchased and office building and the land on which it is located for P7,500,000 cash 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 building. A. What is the total cost of the land? B. What is the total cost of the building?
on 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 100, 000 . The building had an appraised value of P2,000,000 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 600, 000 , 60 % of which is allocated to the land . What is the total cost of land ?
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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…
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Purchased for P5,500,000, including appraiser fee of P100,000´a warehouse building and the land on which it is located. The land had an appraised value of P2,000,000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of P2,500,000. 4. Purchased an office building and the land on which it is located for P7,500,000 cash 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 building. Required: Prepare journal entries to record the transactions for the current year.
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