Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 8 (2 points) Waldorf Corporation acquired land, buildings, and equipment from a bankrupt competitor at a lump-sum price of $132,000. At the time of
Question 8 (2 points)
Waldorf Corporation acquired land, buildings, and equipment from a bankrupt competitor at a lump-sum price of $132,000. At the time of acquisition, Waldorf paid $12,000 to have the assets appraised. The appraisal disclosed the following fair values:
Land $96,000
Buildings 76,800
Equipment 19,200
What costs should be assigned to the land, buildings, and equipment, respectively?
Question 8 options:
a)
$96,000, $76,800, and $19,200
b)
$66,000, $52,800, and $13,200
c)
$72,000, $57,600, and $14,400
d)
$48,000, $48,000, and $48,000
On March 1, 2020, Chucky Ltd. purchased land for $ 270,000 cash, which they intend to use for their new head office. Construction on the office building began on March 1. The following expenditures were incurred for construction:
Date Expenditures
March 1, 2020 $ 450,000
April 1, 2020 252,000
May 1, 2020 450,000
June 1, 2020 720,000
The office building was completed and ready for occupancy on July 1. To help pay for construction, Chucky borrowed $ 360,000 on March 1, 2020, on a 9%, three-year note payable. Other than this note, the only other debt outstanding during 2020 was a $ 150,000, 10%, six-year note payable dated January 1, 2019.
Question 9 (2 points)
The weighted-average accumulated expenditures on the construction project during 2020 were
Question 9 options:
a)
$ 1,467,000.
b)
$ 348,000.
c)
$ 258,000.
d)
$ 156,000.
Question 10 (2 points)
The actual interest cost incurred during 2020 was
Question 10 options:
a)
$27,000
b)
$39,500
c)
$42,000
d)
$47,400
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