Asset Acquired by Donation A developer of a large shopping center donated a building and land to
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Question:
Asset Acquired by Donation A developer of a large shopping center donated a building and land to the Netting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000.
Required:
1. Prepare the journal entry to record the acquisition of the land and building.
2. Next Level How should the 10-year agreement be reported in the financial statements?
3. Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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