Question
Item 1: Entity A incurred the following plant asset expenditures in during the year. 1. Real estate purchased as plant site (land $190,000 and building
Item 1: Entity A incurred the following plant asset expenditures in during the year.
1. Real estate purchased as plant site
(land $190,000 and building $80,000) $270,000
2. Accrued real estate taxes (owed by seller) paid at time
of purchase of real estate 6,000
3. Cost of demolition of building to make land suitable for
construction of new building 32,000
4. Cost of filling and grading the land 6,700
5. Excavation costs for new building 21,900
6. Architects fees on new building plans 44,000
7. Full payment to building contractor 629,500
8. Cost of parking lots, driveways, landscaping 36,000
9. Proceeds from salvage of demolished building 12,700
List the items and amounts that make up the Land account. Be sure to provide a total.
The Items and amount that make up the land account:
Cost of Real Estate | 270000 |
Accrued taxes | 6000 |
Cost of demolishing Building | 32000 |
Proceeds from salvage | -12700 |
Total | 295300 |
Cost of parking lots - Land improvement cost
Item 2: Equipment with a cost of $440,000 has an estimated salvage value of $40,000 and an estimated life of 8 years. Compute the annual depreciation and then show what this asset looks like on the balance sheet at the end of the second year (prepare a partial classified balance sheet).
I just need the second part answered. Thank you!
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