Long-term asset costs and partial year depreciation (Learning Objectives 2 & 3) 2025 min. Tri-State Manufacturing incurred

Question:

Long-term asset costs and partial year depreciation

(Learning Objectives 2 & 3) 20–25 min.

Tri-State Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building.

a. Purchase price of four acres of land..............................................................

b. Additional dirt and earthmoving ....................................................................

c. Fence around the boundary of the property...................................................

d. Attorney fee for title search on the land.........................................................

e. Unpaid property taxes on the land to be paid by Tri-state .............................

f. Company signs at the front of the property...................................................

g. Building permit for the building.....................................................................

h. Architect’s fee for the design of the building .................................................

i. Labor to construct the building .....................................................................

j. Materials used to construct the building .......................................................

k. Landscaping..................................................................................................

l. Parking lot and concrete walks......................................................................

m. Lights for the parking lot and walkways ........................................................

n. Salary of construction supervisor (85% to building;

15% to parking lot and concrete walks) ........................................................

o. Furniture for the building...............................................................................

p. Transportation and installation of furniture ...................................................

$193,000 9,400 17,500 1,100 5,900 4,700 2,100 20,900 498,000 401,000 6,700 29,100 10,500 60,000 106,000 1,900 Tri-State Manufacturing depreciates buildings over 30 years, land improvements over 20 years, and furniture over eight years, all on a straight-line basis with zero residual value.

Requirements 1. Set up columns for Land, Land Improvements, Building, and Furniture. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset.
2. All construction was complete and assets were placed in service on September 1.
Record partial-year depreciation for the year ended December 31. Round intermediate calculations to the nearest cent and final answers to the nearest whole dollar.AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9781292019543

3rd Global Edition Edition

Authors: Robert Kemp, Jeffrey Waybright, Pearson Education

Question Posted: