Liltua Company pays $ 375,280 for real estate plus $ 20,100 in closing costs. The real estate consists of land appraised at $ 157,040; land improvements appraised at $ 58,890; and a building appraised at $ 176,670. Allocate the total cost among the three purchased assets and prepare the journal entry to record the purchase.
Answer to relevant QuestionsIn early January 2013, NewTech purchases computer equipment for $ 154,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $ 25,000. Prepare a table showing depreciation ...Oki Company pays $ 264,000 for equipment expected to last four years and have a $ 29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. During the second year of the ...Exercise 10- 22 Evaluating efficient use of assets A1 Lok Co. reports net sales of $ 5,856,480 for 2012 and $ 8,679,690 for 2013. End-of-year balances for total assets are 2011, $ 1,686,000; 2012, $ 1,800,000; and 2013, $ ...On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs machinery costing $410,000 that has a 10-year life and no salvage value and is ...On January 1, 2006, Mason Co. entered into a 12-year lease on a building. The lease contract requires (1) annual (prepaid) rental payments of $ 36,000 each January 1 throughout the life of the lease and (2) for the lessee to ...
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