Business, 26.08.2020 14:01 QuestionsAnsweredNow

The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2013.Cost of real estate acquired for a new manufacturing plant 365000The land is appraised for 262,800 and the building for 102,200Real estate taxes paid by the purchaser 20,000Cost of removing barn 8,500Architect fees for updating building 6750Attorneys fees for closing sale 12500Grading land 3500paving parking lot 7000planting trees and shrubs 9250cost of repairs to building due to storm 1300lights placed on driveway 4750fee to real estate broker 25001: Determine the cost of the land, the building and the improvements (Round to the nearest dollar)2: Prepare journal entries on December 31, 2013 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. 3: Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).

Answers: 2

Show answers

Answers

1) there is no fixed formula for allocating land costs, specially since you should try to allocate more costs to the building or other depreciable assets than to land, but the IRS is not allowing this anymore. In some places, it is not accepting the old 80/20 rule or even a 60/40 rule for allocating costs, instead it is requiring costs to be allocated based on a professional appraisal.

cost of land:

appraisal value = $262,800real estate taxes = ($262,800 / $365,000) x $20,000 = $14,400fee to real estate broker = ($262,800 / $365,000) x $2,500 = $1,800cost of removing barn = $8,500attorney's fees for closing sale = ($262,800 / $365,000) x $12,500 = $9,000grading land = $3,500total cost of land = $300,000

cost of building:

appraisal value = $102,200real estate taxes = ($102,200 / $365,000) x $20,000 = $5,600fee to real estate broker = $700architect's fees for updating building = $6,750attorney's fees for closing sale = $3,500cost of repairs to building due to storm = $1,300total cost of building = $120,050

cost of land improvements:

paving parking lot = $7,000planting trees and shrubs = $9,250lights placed on driveway = $4,750total cost of land improvements = $21,000

2) if we assume MACRS 20 year property (double declining), half year convention for depreciating the building, the depreciation for 2013 would be 3.75% x $120,050 = $4,501.86 ≈ $4,502

December 31, 2013, depreciation expense

Dr Depreciation expense 4,502

Cr Accumulated depreciation: building 4,502

3) land improvements depreciation expense for year using straight line method = $21,000 / 5 = $4,200 x 2/12 = $700

December 31, 2013, depreciation expense

Dr Depreciation expense 700

Cr Accumulated depreciation: land improvements 700

Answer from: Quest

answer; i believe the correct answer is (tall); ///good luck

Answer from: Quest

Money believe but i may be wrong

Another question on Business

Business, 21.06.2019 21:30

Dr. dow jones wants to know whether a problem-based approach to teaching economics will result in higher academic performance than his traditional method. of the six sections of economics 101 at his university, dr. jones randomly assigns three sections to the traditional method and three sections to the problem-based method for unit 1 of the course. then all sections switch the instructional method for unit 2. he plans to compare the performance of the two groups of sections on their unit 1 and unit 2 exams. this study employs a design.

Answers: 3

Answer

Business, 22.06.2019 16:10

The following are line items from the horizontal analysis of an income statement:increase/ (decrease) increase/ (decrease) 2017 2016 amount percent fees earned $120,000 $100,000 $20,000 20% wages expense 50,000 40,000 10,000 25 supplies expense 2,000 1,700 300 15 which of the items is stated incorrectly? a. fees earned b. supplies expense c. none of these choices are correct. d. wages expense

Answers: 3

Answer

Business, 22.06.2019 21:10

Skychefs, inc. prepares in-flight meals for a number of major airlines. one of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. during the most recent week, the company prepared 4000 of these meals using 960 direct labor hours. the company paid these direct labor workers a total of $19,200 for this work, or $20.00 per hour. according to standard cost card for this meal, it should require 0.25 direct labour-hours at a cost of $19.75 per hour.1. what is the standard labor-hours allowed (sh) to prepare 4,000 meals? 2. what is the standard labor cost allowed (sh x sr) to prepare 4,000 meals? 3. what is the labor spending variance? 4. what is the labor rate variance and the labor efficiency variance?

Answers: 3

Answer

Business, 23.06.2019 14:30

Question 3 options: ps.55 four corners is an ibc company that sells delicious navajo tacos in the crossroads food court. part of their success can be attributed to the freshly fried indian bread that is used not only for the tacos, but also for dessert items. as demand grows the fry-bread process is becoming a bottleneck. operations management for the company is looking at two different process options to replace the highly manual process currently being used. option 1 (medium automation) would cost $175 to implement whereas option 2 (high automation) would cost $350. with option 1 the variable cost per fry bread produced would be $0.20. the variable cost for option 2 would be $0.09 per fry bread. at what volume (demand) of fry breads is the cost for the two options the same? (display your answer to two decimal places.)

Answers: 3

Answer

You know the right answer?

The following expenditures are related to land, land improvements, and buildings, which were acquire...

Questions