{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-14T00:04:32-04:00", "answer_date": "2024-09-14 00:04:32", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10720025", "url": "\/study-help\/questions\/assume-that-a-company-buys-land-with-a-building-on-10720025", "question_creation_date_js": "2024-09-14T00:04:32-04:00", "question_creation_date": "Sep 14, 2024 12:04 AM", "meta_title": "[Solved] Assume that a company buys land with a bu | SolutionInn", "meta_description": "Answer of - Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to t | SolutionInn", "meta_keywords": "assume,company,buys,land,building,$1,500,000,time,purchase,planned,tear,old,build", "question_title_h1": "Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old", "question_title": "Assume that a company buys land with a building on it for", "question_title_for_js_snippet": "Assume that a company buys land with a building on it for $1,500,000 At the time of purchase the company planned to tear the old building down and build a new building The cost to tear down and dispose of the old building was $150,000 and they sold some material for $25,000 The cost to build the new building was $5,500,000 and the cost to grade the lot and landscape was $600,000 It is expected the life of the building is 25 40 years with a salvage value of $2,000,000 to $3,000,000 Discussion Questions If management desired the smallest depreciation possible over the next five (5) years, what recommendation would you make Support your recommendation by calculations Why might the company want to do this If management desired the largest depreciation possible over the next five (5) years, what recommendation would you make Support your recommendation by calculations Why might the company want to do this Imagine that this company came to you before undertaking this project and presented a proposal outlining the information provided above What problems or concerns would you have raised for the company to consider ", "question_description": "

Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. The cost to tear down and dispose of the old building was $150,000 and they sold some material for $25,000. The cost to build the new building was $5,500,000 and the cost to grade the lot and landscape was $600,000. It is expected the life of the building is 25-40 years with a salvage value of $2,000,000 to $3,000,000.<\/p>

Discussion Questions:<\/strong><\/p>

  1. If management desired the smallest depreciation possible over the next five (5) years, what recommendation would you make? Support your recommendation by calculations. Why might the company want to do this?<\/li>
  2. If management desired the largest depreciation possible over the next five (5) years, what recommendation would you make? Support your recommendation by calculations. Why might the company want to do this?<\/li>
  3. Imagine that this company came to you before undertaking this project and presented a proposal outlining the information provided above. What problems or concerns would you have raised for the company to consider?<\/li> <\/ol>", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "9780470374948, 470423684, 470374942, 978-0470423684", "edition": "13th Edition", "authors": "Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/11.jpg", "uri": "\/textbooks\/intermediate-accounting-13th-edition-470423684", "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-14 00:04:32", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/industrial-organizational-psychology-understanding-the-workplace\/3-if-you-are-ever-the-victim-of-an-accident-2008233", "description": "3. If you are ever the victim of an accident and there are many witnesses, what should you do to help ensure that one of the witnesses helps you? a. Scream for help. b. Remain quiet so as not to...", "stars": 0 }, { "url": "\/colonial-state-college-is-considering-building-a-new-multipurpose-athletic", "description": "Colonial State College is considering building a new multipurpose athletic complex on campus. The complex would provide a new gymnasium for intercollegiate basketball games, expanded office space,...", "stars": 3.5 }, { "url": "\/study-help\/questions\/assume-that-a-company-buys-land-with-a-building-on-10720025", "description": "Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. The cost to tear down and...", "stars": 3.5 }, { "url": "\/study-help\/questions\/juniper-corporation-is-considering-two-alternative-investment-proposals-with-the-7207964", "description": "Juniper Corporation is considering two alternative investment proposals with the following data: Proposal X Investment $870,000 Useful life 8 years Proposal Y 3544,000 8 years Estimated annual net...", "stars": 3.5 }, { "url": "\/study-help\/questions\/12-the-test-data-of-a-pressure-sensor-is-shown-1025401", "description": "1-2: The test data of a pressure sensor is shown in the following table, calculate the nonlinear error, hysteresis and repeatability error. Output value\/mV Pressure First cycle Second cycle Third...", "stars": 3.5 }, { "url": "\/study-help\/questions\/breach-of-human-rights-lb-hospitality-hotel-offers-customers-free-1005297", "description": "Breach of Human Rights? L.B Hospitality Hotel offers customers free toiletries, coffee and snack basket for each night clients stay at their hotel. These items are left in each room by the...", "stars": 3.5 }, { "url": "\/study-help\/questions\/a-water-storage-tank-has-a-cylindrical-shape-the-diameter-1003800", "description": "A water storage tank has a cylindrical shape. The diameter of the base of the tank is 0.568 m. The height of the tank is 0.855 m. This is shown in the following diagram. -0.568 m 0.855 m (a) Write...", "stars": 3.5 }, { "url": "\/study-help\/questions\/a-company-is-studying-the-effectiveness-of-their-text-message-1001769", "description": "A company is studying the effectiveness of their text message advertisements by counting the number of visits to their website that originate from a link in one of the texts. The function A(r) gives...", "stars": 3.5 }, { "url": "\/study-help\/questions\/this-is-a-circuit-design-i-made-in-tinkercad-i-1029857", "description": "This is a circuit design i made in TinkerCAD. I am trying to use the green LED with variable brightness as a function of the Ultrasonic sensor reading. The three Red LEDs are a warning indicator if...", "stars": 3.5 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/the-following-transactions-occurred-for-lawrence-engineering-a-cick-the-10720024", "next": "\/study-help\/questions\/port-ormond-carpet-company-manufactures-carpets-fiber-is-placed-in-10720026" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Assume that a company buys land with a building on it for", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/assume-that-a-company-buys-land-with-a-building-on-10720025" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }