Question
On October 1 Computer Solutions purchased an office building for $473,000, which included land, building, and office equipment. The purchase was financed with a 30
On October 1 Computer Solutions purchased an office building for $473,000, which included land, building, and office equipment. The purchase was financed with a 30 year loan from the bank with an interest rate of 5% (ordinary annuity). The first payment is due November 1. Appraisal of the property came in at $525,000 with land appraised at $200,000; building, $275,000, and office equipment, $50,000. For this assignment you need to calculate the amount to be allocated to each fixed asset category (round to nearest dollar), plus you need to calculate the monthly loan payment. An Excel file needs to be created and saved (your_name QB Part 2) that includes a sheet for the amortization schedule and a sheet showing how you determined the allocation of the purchase price. The purchase allocation should be completed in Excel using a formula. This file will be submitted with Part 2 reports.
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