Question
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $112,000 plus $8,000
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $112,000 plus $8,000 in fees connected with the purchase. The following information relates to the property. Tax Assessment Sellers Book Value Original Cost
Land $16,000 $8,000 $8,000
Warehouse 32,000 16,000 48,000
Building 48,000 40,000 64,000
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Horngrens Financial & Managerial Accounting
Authors: Tracie Miller Nobles, Brenda Mattison
7th Edition
0136516254, 9780136516255
