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Accounting problems

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Question;Problem 8-1A Plant asset costs;depreciation methods LO C1, P1;Timberly;Construction negotiates a lump-sum purchase of several assets from a company;that is going out of business. The purchase is completed on January 1, 2013;at a total cash price of $830,000 for a building, land, land improvements;and four vehicles. The estimated market values of the assets are building;$514,250, land, $299,200, land improvements, $28,050, and four vehicles;$93,500. The company?s fiscal year ends on December 31.;Required;1.1;Prepare;a table to allocate the lump-sum purchase price to the separate assets;purchased.;1.2;Prepare;the journal entry to record the purchase.;2.;Compute;the depreciation expense for year 2013 on the building using the;straight-line method, assuming a 15-year life and a $29,000 salvage value.;3.;Compute;the depreciation expense for year 2013 on the land improvements assuming a;five-year life and double-declining-balance depreciation.;Problem 8-2A Asset cost allocation;straight-line depreciation LO C1, P1;[The following information applies to;the questions displayed below.];In;January 2013, Mitzu Co. pays $2,750,000 for a tract of land with two;buildings on it. It plans to demolish Building 1 and build a new store in its;place. Building 2 will be a company office, it is appraised at $720,000, with;a useful life of 20 years and an $85,000 salvage value. A lighted parking lot;near Building 1 has improvements (Land Improvements 1) valued at $510,000;that are expected to last another 17 years with no salvage value. Without the;buildings and improvements, the tract of land is valued at $1,770,000. The company;also incurs the following additional costs;Cost;to demolish Building 1;$;344,400;Cost;of additional land grading;185,400;Cost;to construct new building (Building 3), having a useful life;of 25 years and a $398,000 salvage value;2,202,000;Cost;of new land improvements (Land Improvements 2) near Building 2;having a 20-year useful life and no salvage value;173,000;Total;costs;7,937,299;references;2.;value:5.00 points;Problem;8-2A Part 1;Required;1.;Allocate;the costs incurred by Mitzu to the appropriate columns and total each column.;check my workreferencesebook;resources;3.;value:5.00 points;Problem;8-2A Part 2;2.;Prepare;a single journal entry to record all the incurred costs assuming they are;paid in cash on January 1, 2013.;Problem 8-2A Part 3;3.;Using the straight-line method, prepare the December 31 adjusting;entries to record depreciation for the 12 months of 2013 when these assets;were in use.

 

Paper#40656 | Written in 18-Jul-2015

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