ROK Company purchased a car wash for $500,000. The fair market value of the assets acquired are as follows: Land: $200,000 Building: $300,000 Equipment: $100,000 The book value of the assets were: Land: $200,000 Building: $250,000 Equipment:$50,000 What are the appropriate amounts that Renner should record for the land, building and equipment, respecitvely? Land, $200,000: Building, $250,000; Equipment, $50,000 O Land. $166.667; Building, $250,000; Equipment. $83,333 O Land. $200,000: Building, $300,000; Equipment $100.000 None of the above are correct.

Nathan Jacob’s Company paid $450,000 to acquire land, building, and equipment. At the time of the acquisition, Nathan Jacob's $15,000 to have the property appraised. The following values were determined from the appraisal: land, $125,000; building, $235,000; and equipment, $150,000.   Required: 1. What cost should Nathan Jacob’s assign to the land, buildings, and equipment, respectively? 2. Provide the journal entry to record the acquisition on the books of Nathan Jacob’s.

Schwartzkopf Co. purchased for $2,200,000 propertythat included both land and a building to be used inoperations. The seller’s book value was $300,000 for theland and $900,000 for the building. By appraisal, the fairvalue was estimated to be $500,000 for the land and$2,000,000 for the building. At what amount shouldSchwartzkopf report the land and the building at theend of the year?

Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was Ghc900,000. According to independent appraisals, the fair values were Ghc450,000 (building A) and Ghc250,000 (building B) for the buildings and Ghc300,000 for the land.   Required: Determine the initial valuation of the buildings and the land.

Carver Inc. purchased a building and the land on which the building is situated for a total cost of $700,000 cash. The land was appraised at $320,000 and the building at $480,000. Required What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.

Carver Inc. purchased a building and the land on which the building is situated for a total cost of $922,800 cash. The land was appraised at $244,081 and the building at $817,139.     What is the accounting term for this type of acquisition? Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Would the company recognize a gain on the purchase? Record the purchase in a horizontal statements model.

Excellent Company purchased a plant, including land, building and machinery, for P 110,000. These items were carried on the bools of the seller as follows: land, P 30,000; building, P 60,000; and machinery, P 30,000. Immediately after the purchase, the assets were appraised at the following values: land, P 30,000; building, P 45,000; and machinery, P 75,000. QUESTION: What cost should Excellent record for the land, building and machinery, respectively? O P 36,666; P 36,667; P 36,667 O P 22,000; P 33,000; P 55,000 O P 27,500; P 55,000; P 27,500 O P 24,000; P 30,000; P 66,000

Samtech Manufacturing purchased land and a building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance. Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $ 25,000 9,500 45,000 4,900 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively. Shortly after acquisition, Samtech spent $91,000 to construct a parking lot and $49,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $340,000 and the salvaged materials were sold for $5,500. In addition, Samtech spent $88,000 clearing and grading the land in preparation for the…

Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?

Broncos Corporation acquired the following assets associated with a manufacturing facility for a lump-sum price of $9,000,000. According to independent appraisals, the fair values were $4,000,000, $2,000,000, $3,000,000, and $1,000,000 for the building, patent, land, and equipment, respectively. What should be the initial value of the patent? Show your computation.