Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech...
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Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $26,000 5,000 Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition 46,e00 State transfer fees 5,e00 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8 million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $350,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $89,000 clearing and grading the land in preparation for the construction of a new building. Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $26,000 5,000 Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition 46,e00 State transfer fees 5,e00 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.2 and $1.8 million, respectively. Shortly after acquisition, Samtech spent $92,000 to construct a parking lot and $50,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $350,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $89,000 clearing and grading the land in preparation for the construction of a new building.
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ANS 1 Total Cost of Land and Building Cost of Purchase 4000000 Title Insurance 26000 ... View the full answer
Related Book For
Advertising & IMC Principles & Practice
ISBN: 978-0132163644
9th Edition
Authors: Sandra Moriarty, Nancy Mitchell, William Wells
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