Scarlett Incorporated purchased a tract of land with an office building and equipment included. The cash purchase

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Scarlett Incorporated purchased a tract of land with an office building and equipment included. The cash purchase price was $ 900,000 plus $ 50,000 in fees connected with the purchase. The following data were collected concerning the property:

Required:
Give the entry to record the purchase; show computations.

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Feb 17, 2015 08:12 AM

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Scarlett Incorporated purchased a tract of land with an office building and equipment included. The cash purchase

Question:

Appraisal Value Vendor's Book Value Original Cost Land Equipment Office building $220,000 360,000 440,000 80,000 170,000 260,000 $80,000 550,000 720,000

Step by Step Answer:

To apportion the cost of 950000 900000 50000 Item Appraisal Value Proportion Apportioned Co...View the full answer

Intermediate Accounting

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