On June 30, 2017, Macrosoft Company acquired a 10-acre tract of land. On the tract was a

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On June 30, 2017, Macrosoft Company acquired a 10-acre tract of land. On the tract was a warehouse that Macrosoft intended to use as a distribution center. At the time of purchase, the land had an assessed tax value of $6,300,000, and the building had an assessed tax value of $11,200,000. Macrosoft paid $15,000,000 for the land and building. After the purchase, the company paid $1,000,000 to have various modifications made to the building.
Required:
1. At what amount should Macrosoft record the land and building?
2. For financial reporting purposes, why might Macrosoft managers prefer to assign a larger portion of the $15,000,000 to the land rather than to the building?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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