Question: Mohave Inc purchased land building and equipment from Laguna
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. At what amounts should each of the three assets be recorded?
Answer to relevant QuestionsFielder Company obtained land by issuing 2,000 shares of its $10 par value common stock. The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the journal entry to record ...Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumulated depreciation of $17,000. The new truck is worth $35,000. Slaton also made cash payment of $33,000. Prepare Slaton’s ...Treatment of Various Costs Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.Abstract company’s fee for title search ...Entries for Acquisition of Assets Presented below are information related to Rommel Company.1. On July 6 Rommel Company acquired the plant assets of Studebaker Company, which had discontinued operations. The appraised value ...Analysis of Subsequent Expenditures The following transactions occurred during 2011. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no ...
Post your question