Q )1 A building acquired at the beginning of the year at a cost of $485,000 has

Question

Q )1 A building acquired at the beginning of the year at a cost of $485,000 has an estimated residual value of $75,000 and an estimated useful life of 25 years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight-line depreciation.
(a) Depreciable cost $ 410000
(b) Straight-line rate (as a percent- enter as a whole number) answer needed.. %
(c) Annual straight-line depreciation $ 16400

2..

Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,000 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet.

$________________ need answer

q. 3 )

The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 5 units at $120 $ 600
Feb. 13 Purchase 65 units at $114 7,410
Oct. 30 Purchase 10 units at $119 1,190
Available for sale 80 units $ 9,200

There are 24 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the average cost method.

a. First-in, first-out (FIFO) method: $ need answer
b. Last-in, first-out (LIFO) method: $ need answer
c. Average cost method: $ 2760

thank uu

Explanation / Answer

Q )1
(b) Straight-line rate (as a percent- enter as a whole number) 4%
      $16,400 / $410,000 = 4%

2. Determine the cost of the land to be reported on the balance sheet.

$327,425

Cash payment                      $30,000
Short-term note                 $270,000
Legal fees                            $1,425
Delinquent taxes                $12,000
Cost of Removal                $18,500
Total cost incurred           $331,925
Less : Salvage materials   ($4,500)
Cost to be reported         $327,425

a. First-in, first-out (FIFO) method:
         14 units @ $114        $1,596
         10 units @ $119       $1,190
Total 24 units                  $2,786

b. Last-in, first-out (LIFO) method: $ need answer
         5 units @ $120          $600
       19 units @ $114      $2,166
       24 units                 $2,766

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.