Details of this Paper

Problem 10-2A Asset cost allocation, straight-line depreciation L.O. C1, P1;[The following information applies to the questions displayed below.];In January 2011,...

Description

solution


Question

Problem 10-2A Asset cost allocation, straight-line depreciation L.O. C1, P1;[The following information applies to the questions displayed below.];In January 2011, Keona Co. pays $2,650,000 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 $780,000, with a useful life of 20 years and an $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $330,000 that are expected to last another 11 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,890,000. The company also incurs the following additional costs;Cost to demolish Building 1 $ 338,400;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 2,262,000;Cost of new land improvements (Land Improvements 2) near Building 2;having a 20-year useful life and no salvage value 168,000

 

Paper#75967 | Written in 18-Jul-2015

Price : $22
SiteLock