Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements LA LA 885240.495 93449.3816 221310.124 Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements LA LA 885240.495 93449.3816 221310.124
Expert Answer:
Answer rating: 100% (QA)
Answer Land 483120 Building 738100 Land Improvements 120780 Explanation L... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
A machine originally had an estimated useful life of 11 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 16 years. At that point the...
-
A firm purchases machinery, which has an estimated useful life of 10 years and no salvage value, for $60,000 at the beginning of the accounting period. What is the adjusting entry for depreciation at...
-
Q1. Equipment costing $400,000 has an estimated useful life of five years and a residual value of $50,000. Record depreciation expense, accumulated depreciation, and book value in the chart below for...
-
Answer Problem 6.12 for a 90% CI. Refer to the data in Table 2.13. Regard this hospital as typical of Pennsylvania hospitals. Table 2.13: Hospital-stay data
-
Charlie Anderson recently began a new job as the office manager for a prominent medical clinic. He has just received a bill from Med-Count, one of the labs that performs tests for the clinic. In...
-
What major liability exposures do you as an individual in your current status as a student face? How are your exposures likely to change after you have completed your education?
-
A work center consisting of 7 machines is operated 16 hours a day for a 5-day week. Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity in standard hours? LO.1
-
A triangle can be formed by drawing line segments on a map of Minnesota connecting the cities of Austin, Rochester, and St. Paul (see figure below). If the actual distance from Austin to Rochester is...
-
Font Alignment ANDFE14, Question 11 G D H B 4 You are an owner of a logging company looking to bid on the pine tree plots you plan to cut this year. You need to perform some analysis of the risks and...
-
2.A. Using the quotes below, answer the following questions. Exchange rate Bid Ask In New York, USD/EUR 1.2267 1.2875 In London, USD/GBP 1.6555 1.7334 2.A1. Calculate the EUR/GBP cross exchange...
-
What impact does the theme love in art have on the artwork Lovers under an Umbrella in the Snow by Suzuki Harunobu
-
From the following electrochemical cells write: (a) the electrode half reactions for oxidation and reduction (b) the overall cell reaction (c) the NERNST equation for the emf for each of the cells...
-
Use the range rule of thumb to identify the values that are significantly low, the values that are signficantly high, and the values that are neither significantly low nor significantly high. A test...
-
On January 1, Year 1, Handy Company (Handy) purchased 70% of the outstanding common shares of Dandy Limited (Dandy) for $11,900. On that date, Dandys shareholders equity consisted of common shares of...
-
CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited shares authorized; 4,900,000 shares issued and outstanding Retained earnings $1,045,000 1,385,000...
-
Cell Phone Radiation Listed below are the measured radiation rates (in W/kg) corresponding to these cell phones: iPhone X, iPhone 7, Google Pixel, Samsung Galaxy 58, OnePlus 5, Motorola VE465, LG G3,...
-
Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1, are given below. Supreme Videos, Inc. Balance Sheet January 1...
-
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
-
Recently, the price-earnings ratio of Amazon.com, Inc. was 191.7 times, and the price-earnings ratio of Bank of Montreal was 12.1 times. The dividend yield of each company was 0.0% and 3.9%,...
-
The following selected account balances relate to the property, plant, and equipment accounts of Bird Corp. Additional information: 1. Purchased land for $50,000, making a $20,000 down payment and...
-
Hussein Hage has just approached a venture capitalist for financing for his new restaurant, Bistro Sally. The lender is willing to loan Bistro Sally Inc. $240,000 at a high-risk interest rate of 9%....
-
Refer to the completely randomized design of Example 10.4, in which we concluded that at least two of the four brands of golf balls are associated with different mean distances traveled when struck...
-
Chemical properties of whole wheat breads. Whole wheat breads contain a high amount of phytic acid, which tends to lower the absorption of nutrient minerals. The Journal of Agricultural and Food...
-
A multiple-comparison procedure for comparing four treatment means produced the confidence intervals shown here. Rank the means from smallest to largest. Which means are significantly different? LO4...
Study smarter with the SolutionInn App