Lump-Sum Purchases; Issuance of Stock for Plant Assets 10.32 A package consisting of building and land is bought at a lump-sum price of $70,000. The FMV of the building and land is $60,000 and $20,000, respectively. Allocate the cost to each item and prepare a jour- nal entry.
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10.32 and 10.33 please.
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- The following information pertains to equipment constructed by a firm for its own use. The construction is finished. Materials used in construction, P 400,000 Labor cost during construction, P 170,000 Fringe benefits on above labor, P 60,000 Incremental overhead due to construction, P 80,000 Interest expense on debt during construction, P 20,000 The interest expense meets the requirements for interest capitalization. The market value of the equipment immediately after construction was completed was P650,000. QUESTION: What is the loss on construction incurred by the firm? zero P 60,000 P 80,000 P 20,000For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. a530.000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehides b. $12.000,000 cost to develop a coal mine, from which an estimated 1 million tons of coal can be edracted e$248,000 cost to replace the roof on a building d. $140,000 cost of a radio and television advertising campaign to introduce a new product line. e58.000 cost of grading and leveling land so that a building can be constructed.17. Cost of a Tangible Capital Asset Borges Ltd. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $85,000; real estate commissions, $5,100; delinquent property taxes, $1,500; closing costs, $3,500; clearing and grading of the land, $8,100. Required: Determine the cost of the land.
- Belpre Inc. constructed a new office building. Building material costs for the new building were $3,000,000; total labor costs were $2,500,000; total company overhead was $9,000,000 (25% of which could be assigned to the new project); and interest paid on a new construction loan for the project was $1,250,000. Calculate the total cost of the self-constructed building. With solution,please. :)) Thank you!A steel company is trying to decide between two industrial type cranes. Crane A and Crane B are mutually exclusive, and the economics estimates for each are shown below. Crane A Crane B Capital investment Annual expenses Salvage value Life, in years $15,000 $35,000 $5,000 $7,000 $4,000 20 If the MARR is 15%, 1-The present worth of the Crane A Capital investment and Annual expenses over 5 years is 65,295.83 39,765.3 -38,465.4 -14,085.8 Crane A 2-The present worth of Crane B over 20 years is $ 3-The present worth of Crane A over 20 years is $ 105,18.02 53,104.2 -66,296.5 Crane B 28,067.8 114 336.1 55,101.5 61,695.7 -40,6732 4-The recommended alternative is1.) JK Chemicals is investing on a new overseas chemical manufacturing plant. Several potential locations were considered and surveys and researches of the areas yielded the following data. Which location should the company choose to build their new chemical plant? Estimated time Cost of Land Annual Cost of Annual Cost of to finish in Equipment Labor years Site 1 $750,000 $500,000 $300,000 3 Site 2 $1,000,000 $400,000 $435,000 4.3 Site 3 $980,000 $453,000 $346,000 2.9 Site 4 $800,000 $237,000 $600,000 2.2 Site 5 $670,000 $344,000 $342,000 5.1 Site 6 $500,000 $230,300 $876,000 1.5 Site 7 $600,000 $543,000 $223,000 2.6 Site 8 $800,000 $293,000 $234,000 3.4 Site 9 $880,000 $300,000 $324,000 4.1 Site 10 $540,000 $123,000 $100,000 8
- Foster has built a new factory incurring the following costs: $'000 Land 1,200 Materials 2,400 Labour 3,000 Architect's fees 25 Surveyor's fees 15 Site overheads 300 Apportioned administrative overheads 150 Testing of fire alarms 10 Business rates for first year 12 7,112 What will be the total amount capitalised in respect of the factory? A $6,112,000 B $6,950,000 C $7,112,000 D $7,100,00012 The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,856,320 1,992,320 1,512,000 2,288,000During the current fiscal year, Heinrich Corp. incurred the following costs related to property, plant, and equipment: Amount paid to the contractor for the building constructed P13,000,000 Building permit fee 120,000 Excavation cost 110,000 Architect fee 440,000 Interest that would have been earned had the money used during the period of construction been invested in the money market 330,000 Invoice cost of machine acquired, terms 3/10, n/30 6,500,000 Freight, unloading and delivery charges for machine acquired 100,000 Custom duties and other charges 270,000 Allowance and hotel accommodation, paid to foreign technicians during installation and test run of machine 520,000 Royalty payment on machines purchased (based on units produced and sold) 240,000 Cash paid for the purchase of land (none was allocated to old building) 10,000,000 Mortgage assumed on the land purchased 2,100,000 Realtor’s commission 650,000 Legal fees, realty taxes and documentation expenses 900,000 Amount…
- Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?Waikiki Trading Ltd incurred the following project expenditures inrespect of a new ERP system in the development phase: Salaries of IT employees working exclusively on the project:R670 000 Employee awareness leaflets: R32 000 General overhead cost allocation: R123 000 Specialist consultancy service: R432 000State what value for each of the above four expenditures will beincluded in the capitalised cost of the ERP system. Write downonly the amounts. (If the amount to be included is NIL in youropinion, then write down NIL).10. Theresa Company purchased for P4,500,000 a tract of land as a factory site. An old building was demolished and construction began on the new building. Cost of demolishing old building Title insurance and legal fees to purchase land 300,000 200,000 Architect fee 950,000 New building construction cost Survey before construction Building permit or payment to city hall for approval of building construction Excavation before new construction 8,000,000 50,000 150,000 200,000 ort 1 100,000 Liability insurance during construction New fence surrounding the factory Driveways, parking bays and safety lighting Cost of trees, shrubs and other landscaping What is the cost of the new building? A. 9,700,000 100,000 550,000 250,000 B. 9,750,000 C. 9,800,000 D. 9,750,000