Samtech Manufacturing purchased land and a building for $4 million. In addition to the purchase price, Samtech madethe following expenditures in connection with the purchase of the land and building:Title insuranceLegal fees for drawing the contractPro-rated property taxes for the period afteracquisitionState transfer feesAn independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 forlandscaping.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 thebuilding. Demolition costs were $350,000 and the salvaged materials were sold for $6,000. In addition, Samtechspent $89,000 clearing and grading the land in preparation for the construction of a new building.Required Required21Complete this question by entering your answers in the tabs below.AssetsDetermine the initial valuation of each asset, assuming that immediately after acquisition,Samtech demolished the building. Demolition costs were $350,000 and the salvagedmaterials were sold for $6,000. In addition, Samtech spent $89,000 clearing and gradingthe land in preparation for the construction of a new building.Note: Enter your answers in dollars not in millions of dollars.LandBuildingLandimprovementsInitialValuation$ 142,000< Required 1Title insuranceLegal fees for drawing the contractPro-rated property taxes for the period afteracquisitionState transfer feesAssets$26,0005,000LandBuildingLandimprovements46,0005,000Samtech Manufacturing purchased land and a building for $4 million. In addition to the purchase price, Samtech madethe following expenditures in connection with the purchase of the land and building:Required 2 >An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 forlandscaping.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 thebuilding. Demolition costs were $350,000 and the salvaged materials were sold for $6,000. In addition, Samtechspent $89,000 clearing and grading the land in preparation for the construction of a new building.InitialValuationComplete this question by entering your answers in the tabs below.Required Required12$1,452,960$ 142,000Determine the initial valuation of each asset Samtech acquired in these transactions.Note: Enter your answers in dollars not in millions of dollars.< Required 126,0005,00046,0005,000Show lessARequired 2 >

The term "initial valuation" refers to the process of determining and assigning an initial or…

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 26,000 5,000 46,000 5,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8 million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 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 $350,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $89,000 clearing and grading the land in preparation for the construction of a new building.

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 26,000 5,000 46,000 5,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8 million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 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 $350,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $89,000 clearing and grading the land in preparation for the construction of a new building.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 85P

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