E8 4 Computing And Recording Cost And Depreciation Of Assets In A Basket Purchase Straight Line Depreciation Lo8 2 8 1 (43.13 KiB) Viewed 75 times
E8-4 Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (Straight-Line Depreciation) LO8-2, 8-3 Zeidler Company bought a building and the land on which the building is located for a total cash price of $182,000. The company paid transfer costs of $2,800. Renovation costs on the building were $34,960. An independent appraiser provided market values for the land, $190,000, and building, $760,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land No Apportioned Renovation cost cost Answer is complete and correct. $ $ 147,840✔ S 34,960 S 36,960✔ 184,800 Transaction Purchase cost S 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) General Journal 182,800✔ 36.960 219,760 Debit Credit
2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Depreciation General Journal Debit 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated useful life of 12 years and an estimated residual value of $14,800. Carrying amount Credit 4. What would be the carrying amount of the property (building and land) at the end of year 2?
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