Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $580,000. However,...
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Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $580,000. However, the estimated fair values of the land, building, and equipment are $204,000, $408,000, and $68,000, respectively, for a total estimated fair value of $680,000. Required: Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value Allocation Percentag % % % Amount of Basket Purchase Recorded Amount Required information [The following information applies to the questions displayed below] On January 1, Pandemic Groceries purchased store equipment for $26,500. Pandemic estimates that at the end of its 10- year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Pandemic used the equipment for 1,650 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Depreciation expense Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $580,000. However, the estimated fair values of the land, building, and equipment are $204,000, $408,000, and $68,000, respectively, for a total estimated fair value of $680,000. Required: Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value Allocation Percentag % % % Amount of Basket Purchase Recorded Amount Required information [The following information applies to the questions displayed below] On January 1, Pandemic Groceries purchased store equipment for $26,500. Pandemic estimates that at the end of its 10- year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Pandemic used the equipment for 1,650 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Depreciation expense
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Youve provided two different accounting scenarios that require calculations related to asset acquisition and depreciation Lets address them one by one ... View the full answer
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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