3. TBTF Incorporated rents commercial real estate to locally based businesses. TBTF purchased ks a large...
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3. TBTF Incorporated rents commercial real estate to locally based businesses. TBTF purchased ks a large office complex on January 2, 2022. In exchange for the real estate, TBTF issued a non- interest bearing note to the seller. This note will be paid in equal instalments that include both principal and interest at the end of each calendar year. Other information pertaining to the purchase of the real estate follows: Annual instalment payment amount Market rate of borrowing for TBTF Number of years note will be outstanding Portion of the purchase price to be allocated to land Portion of the purchase price to be allocated to land improvements TBTF has a year end date of December 31. Required: $ 258,841 8% 25% 15% Prepare the journal entries required by TBTF to account for the note on each of the following dates: January 2, 2022 (3.5 marks) December 31, 2024 (3.5 marks) 3. TBTF Incorporated rents commercial real estate to locally based businesses. TBTF purchased ks a large office complex on January 2, 2022. In exchange for the real estate, TBTF issued a non- interest bearing note to the seller. This note will be paid in equal instalments that include both principal and interest at the end of each calendar year. Other information pertaining to the purchase of the real estate follows: Annual instalment payment amount Market rate of borrowing for TBTF Number of years note will be outstanding Portion of the purchase price to be allocated to land Portion of the purchase price to be allocated to land improvements TBTF has a year end date of December 31. Required: $ 258,841 8% 25% 15% Prepare the journal entries required by TBTF to account for the note on each of the following dates: January 2, 2022 (3.5 marks) December 31, 2024 (3.5 marks)
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Journal Entries for TBTF Incorporated January 2 2022 Issuing the NonInterest Bearing Note Debit Land 258841 x 25 64710 Debit Land Improvements 258841 ... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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