6. On April 1, 20X2, a company purchased for s270,000 a tract of land on which w

Question

6. On April 1, 20X2, a company purchased for s270,000 a tract of land on which were located a warehouse and office building. The following data were collected concerning the property DATA FOR LUMP SUM PURCHASE OF ASSETS AT APRIL 1, 20X2 Current Assessed Valuation Vendor's Original Cost Land Warehouse Office Building 87,500 S 37,500 100,000 70,000 40,000 90,000 What are the appropriate amounts that the company should record for the land, warehouse, and office building, respectively? (a) Land, $ 94,500; Warehouse, $54,000; Office Building, S121,500. (b) Land, $105,000; Warehouse, $45,000; Office Building, $120,000. (c) Land, S 70,000; Warehouse, $40,000; Office Building, S 90,000. (d) Land, $ 87,500; Warehouse, $37,500; Office Building, $110,000. A company values its inventory by using the retail method (FIFO basis, lower of cost or market). The following information is available for the year 20X2. 7. DATA FOR RETAIL INVENTORY METHOD FOR COSTING INVENTORY AND COST OF GOODS SOLD Cost Retail 80,000$ 140,000 Beginning Inventory Purchases Freight In Shortages Markups (Net) Markdowns (Net) 297,000 420,000 4,000 8,000 10,000 2,000 400,000 Sales

Explanation / Answer

Solution for Q-9:- (b): Land 105,000; Warehouse 45,000; Office Building 120,000

Working: Land: 87,500 / 225,000 * 270,000 = 105,000 Warehouse: 37,500 / 225,000 * 270,000 = 45,000 Office Building: 1,00,000 / 225,000 * 270,000 = 120,000

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

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