• Two new office buildings were purchased:

o Office building #1 cost $2,000,000. Marketing, accounting, legal, and the executive’s teams moved into the building in 2020. Legal costs were $50,000, repairs and maintenance costs were $15,000, and property transfer taxes were $30,000.

o Office building #2 cost $1,300,000. It was purchased to rent to long-term commercial tenants and earn rental income. Legal costs were $35,000, repairs and maintenance were $15,000, and property transfer taxes were $8,000. •

A second production plant was purchased for $550,000 in order to accommodate the large infrastructure that Gray produces. The production plant was operational as soon as it was purchased. •

Vacant land was purchased for $150,000 in the North end of Halifax. Land value in this area of the city is increasing each year and Gray’s plan is to hold the property for a number of years and then sell when it is offered the right price. Legal costs were $10,000 and property transfer taxes were $6,000

n January 1, 2021, Gray purchased an additional investment property that holds a manufacturing plant which Gray leases out to another company. This property was initially recorded at $1,300,000. To date, no other adjustments have been made to this account. The appraised value of this property as at December 31, 2021, is $1,280,000. The manufacturing plant has a useful life of 20 years.

We also have land that had a carrying value of $85,000 as at December 31, 2020. This land had an original cost of $72,000 when purchased in 2018. On December 15, 2021, we sold this land for $92,000 because we were offered a really good price. The realtor agreed to a reduced flat rate commission of 2% of the selling price .To date this sale has not yet been recognized.

(A) please file the given below table in B COLOUMN ONLY write yes and no & C column only chose the drop down options and colum d total amount .

	A	B	C	D
1	Item	Classified as an investment property?	Rationale	Total amount
2	Land and office building #1
3	Land and office building #2
4	Production plant
5	Vacant land
	Column B drop-down options
	Yes
	No
	Column C drop-down options
	Gray plans to hold this for long-term appreciation.
	It is owned by Gray and used for earning rental income in the short term.
	Gray plans to hold this for short-term appreciation.
	It is owned by Gray and leased out to commercial tenants.
	It is an owner-occupied building.
	The future use of the property is undetermined.

( B ) prepare the journal entry year end entry of land and manufactured plant only.

Answer rating: 100% (QA)

A Asset Classification Table Heres the table filled out according to the information provided A B C ... View the full answer