Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

149. Salem Company hired Kirk Construction to construct an office building for 8,000,000 on land costing 2,000,000, which Salem Company owned. The building was complete

image text in transcribed
149. Salem Company hired Kirk Construction to construct an office building for 8,000,000 on land costing 2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2011 and it has a useful life of 40 years. The price of the building included land improvements costing 600,000 and personal property costing 750,000. The useful lives of the land improvements and the personal property are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What is the net amount reported for the building on Salem Company's December 31, 2011 statement of financial position? a. 7.665,000 b. 7,573,750 c. 6,483,750 d. 7,800,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker

3rd Edition

9780130101952

More Books

Students also viewed these Accounting questions

Question

g(x)h(x)f(x)F(x)=2x=2+x=(2+x)2=g(x)+f(x)g(x)+h(x)f(x)x100x

Answered: 1 week ago