On April 14, 2014, Lestok Company purchased land and a building for a total price of $540,000, paying cash of $85,000 and borrowing the balance from the bank. The bank appraised the land at $320,000 and the building at $180,000. Complete the following table and prepare the entry to record thepurchase.
Answer to relevant QuestionsDelta Company purchased a photocopier costing $45,000 on January 1, 2014. The equipment is expected to produce a total of 4,000,000 copies over its productive life. Its residual value at the end of its useful life is ...On January 1, 2014, OSF Inc. purchased land, building, equipment, and tools for a total of $2,520,000. An appraisal identified the fair values to be $700,000 (land), $1,120,000 (building), $210,000 (equipment), and $70,000 ...On October 6, 2014, Zeebolt Construction traded-in an old tractor for a new one, receiving a $56,000 trade-in allowance and paying the remaining $164,000 in cash. The old tractor cost $190,000, and straight-line depreciation ...On April 12, 2014, Prism Resources paid cash of $552,375 for real estate plus $29,400 cash in closing costs. The real estate included: land appraised at $249,480; land improvements appraised at $83,160; and a building ...On April 1, 2014, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to last five years and has a residual value of $12,500.RequiredCalculate depreciation expense for 2014 and 2015 to the nearest ...
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