1. On January 1, 2017, a Corporation purchased a parcel of land as a factory sit
ID: 2582174 • Letter: 1
Question
1. On January 1, 2017, a Corporation purchased a parcel of land as a factory site for $600,000. An old building on the property was demolished, and construction began on a new building which was completed on May 20, 2017. Costs incurred during this period are listed below Demolition of old building Architect's fees Legal fees for title investigation and purchase contract Construction costs (Salvaged materials resulting from demolition were sold for $40,000.) $ 50,000 18,000 3,000 2,400,000 The company should record the cost of the land and new building, respectively as 2. Deal Company purchased equipment for $80,000 (excluding taxes). Sales tax on the purchase was 10%. Other costs incurred were freight charges of $600, repairs of $190 for damage during installation, and installation costs of $450. What is the cost of the equipment? 3. Roko Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $3,600,000 on July 1, and $12,000,000 on December 31. Roko Company borrowed $4,800,000 on January 1 on a 5-year, 9% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,000,000 note payable and an 12%, 4-year, $9,600,000 note payable. What are the weighted-average accumulated expenditures? 4. Genesis Products purchased a machine for $62,000 on January 1, 2016. The fiscall Salvage value is estimated to be $2,000. Depreciation expense for 2017 is 5. Matthew Corporation purchased a truck at the beginning of 2016 for $92,600. The year ends on December 31 every year. The company depreciates the machine over 10 year estimated useful life using the double-declining balance method truck is estimated to have a salvage value of $2,600 and a useful life of 120,000 miles. It was driven 30,000 miles in 2016 and 40,000 miles in 2017. What is the depreciation expense for 2017? estimated life of 10 years and estimated salvage value of $4,000. What is the depreciation expense for the year ended Dec. 31, 2017 if the company applies the straight line method? 6. A company purchased equipment for $50,000 on Jan. 1, 2015. The equipment hasExplanation / Answer
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Land Cost of factory site 600000 Legal fee for title investigation and purchase contract 3000 Value of land 603000 Building Demolition of old building 50000 Architect's fee 18000 Construction costs 2400000 Sale value of salvaged items -40000 Value of building 2428000Related Questions
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