At December 31, 2024, certain accounts included in the property, plant, and equipment section of Crane...
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At December 31, 2024, certain accounts included in the property, plant, and equipment section of Crane Company's balance sheet had the following balances. Land Buildings Leasehold improvements Equipment 1. $238,000 2. 904,400 667,600 During 2025, the following transactions occurred. 876,500 Land site number 621 was acquired for $859,800. In addition, to acquire the land Crane paid a $59,000 commission to a real estate agent. Costs of $35,600 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $15,600. A second tract of land (site number 622) with a building was acquired for $423,000. The closing statement indicated that the land value was $302,600 and the building value was $120,400. Shortly after acquisition, the building was demolished at a cost of $40,900. A new building was constructed for $332,900 plus the following costs. 3. 4. 5. Excavation fees Architectural design fees Building permit fee Imputed interest on funds obtained from stock financing used during construction The building was completed and occupied on September 30, 2025. $37,900 11,000 2,600 8,500 A third tract of land (site number 623) was acquired for $654,700 and was put on the market for resale. During December 2025, costs of $89,200 were incurred to improve leased office space. The related lease will terminate on December 31, 2027, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,300, freight costs were $3,200, installation costs were $2,500, and royalty payments for 2025 were $17,700. (a) Calculate the balance at December 31, 2025 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Land Buildings Leasehold improvements Equipment Balance at December 31, 2025 $ $ $ ŁA $ At December 31, 2024, certain accounts included in the property, plant, and equipment section of Crane Company's balance sheet had the following balances. Land Buildings Leasehold improvements Equipment 1. $238,000 2. 904,400 667,600 During 2025, the following transactions occurred. 876,500 Land site number 621 was acquired for $859,800. In addition, to acquire the land Crane paid a $59,000 commission to a real estate agent. Costs of $35,600 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $15,600. A second tract of land (site number 622) with a building was acquired for $423,000. The closing statement indicated that the land value was $302,600 and the building value was $120,400. Shortly after acquisition, the building was demolished at a cost of $40,900. A new building was constructed for $332,900 plus the following costs. 3. 4. 5. Excavation fees Architectural design fees Building permit fee Imputed interest on funds obtained from stock financing used during construction The building was completed and occupied on September 30, 2025. $37,900 11,000 2,600 8,500 A third tract of land (site number 623) was acquired for $654,700 and was put on the market for resale. During December 2025, costs of $89,200 were incurred to improve leased office space. The related lease will terminate on December 31, 2027, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,300, freight costs were $3,200, installation costs were $2,500, and royalty payments for 2025 were $17,700. (a) Calculate the balance at December 31, 2025 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Land Buildings Leasehold improvements Equipment Balance at December 31, 2025 $ $ $ ŁA $
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Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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