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devry acct305 week 1 homework




Question;Week One - Homework Exercises E10-1, E10-8 and E10-14, and;E10-18;E10-1 On March 1;2013, Beldon Corporation purchased land as a factory site for $60,000. An old;building on the property was demolished, and construsted began on a new;building that was completed on December 15, 2013. Costs incurred during this;period are listed below;Demolition of old building;$4,000;Architect's fees (for new building);12,000;Legal fees for title investigation of land;2,000;Property taxes on land (for period beginning March 1, 2013);3,000;Construction costs;500,000;Interest on construction loan;5,000;Salvaged materials resulting from the demolition of the old;building were sold for $2,000.;Required: Determine;the amounts that Beldon should capitalize as the cost of the land and the new;building;E10-8;Pinewood Company purchased two buildings on four acres of;land. The lump-sum purchase price was $900,000. According to independent appraisals;the fair values were $450,000 (building A) and $250,000 (building B) for the;buildings and $300,000 for the land.;Required: Determine;the initial valuation of the buildings and the land.;E10-14 Funseth Farm;Inc. purcahsed a tractor in 2010 at a cost of $30,000. The Tractor was sold for;$3,000 in 2013. Depreciation recorded through the disposal date totaled;$26,000.;Required: 1.;Prepare the journal entry to record the sale;2.;Assuming that the tractor was sold for $10,000, prepare the journal entry to;record the sale;E10-18 The Bronco;Corporation exchanged land for equipment. The land had a book value of $120,000;and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to;complete the exchange which has commercial substance. [This is a variation of the;previous exercise.];Required: Assume;the same facts as in Exercise 10-17 except that Bronco received $10,000 from;the owner of the equipment to complete the exchage.;1. What;is the fair value of the equipment?;2. Prepare the journal entry to record the exchange.


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