Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9)Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for
9)Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $740,000; Building, $2,200,000 and Equipment, $1,460,000. (Round percentages to two decimal places: ie .054 = 5%). What value will be recorded for the building?
-
$350,000
-
$175,000
-
$1,187,500
-
$2,200,000
10)What journal entry would be used to record the purchase of the above assets?
-
Land 740,000 Building 2,200,000 Equipment 1,460,000 Cash 4,400,000 -
Land 740,000 Building 2,200,000 Equipment 1,460,000 Cash 700,000 Notes payable 3,700,000 -
Land 740,000 Building 2,200,000 Equipment 1,460,000 Cash 1,675,000 Notes payable 700,000 Gain on purchase of long-term assets 2,025,000 -
Land 403,750 Building 1,187,500 Equipment 783,750 Cash 700,000 Notes payable 1,675,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started