Refer to the situation described in BE 10-2. Assume that Fullerton decides to use the warehouse rather than demolish it. An independent appraisal estimates the fair values of the land and warehouse at $420,000 and $280,000, respectively. Determine the amounts Fullerton should capitalize as the cost of the land and the building.
Answer to relevant QuestionsSmithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $5.6 million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to ...The balance sheets of Pinewood Resorts reported net fixed assets of $740,000 and $940,000 at the end of 2010 and 2011, respectively. The fixed-asset turnover ratio for 2011 was 3.25. Calculate Pinewood's net sales for 2011.Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor:Salaries ................................ $220,000Depreciation on R&D facilities and equipment ...Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the ...[This is a variation of the previous exercise.]Required:Assume the same facts as in Exercise 10-16 except that Bronco received $10,000 from the owner of the equipment to complete the exchange.1. What is the fair value of the ...
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