Chapter 8 In-Class Exercises.pdf - Chapter 8 In-Class Exercises 1(Excerpted from E8-4 Zeidler Company bought a building and the land on which the

Chapter 8 In-Class Exercises.pdf - Chapter 8 In-Class...

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1 Chapter 8 In-Class Exercises 1. (Excerpted from E8-4) Zeidler Company bought a building and the land on which the building is located for a total cash price of $356,000. The company paid transfer costs of $4,000. Renovation costs on the building were $46,000. An independent appraiser provided market values for the land, $100,000, and building, $300,000 before renovation. Required: Allocate the cost of the property on the basis of the appraised values. Show computations. 2.Which of the following costs would be excluded from the acquisition cost of equipment purchased from a supplier? A.Cost to install the equipment. B.The cost of freight paid to get the equipment to our factory. C.The cost to widen an entrance in the building to bring the equipment into the facilities. D.A purchases discount offered by the supplier. 3.In 2016, Gamma Company made an ordinary repair to a delivery truck at a cost of $300. Gammas accountant debited the asset account, Delivery Vehicles. Was this treatment an error, and if so, what will be the effect on the financial statements of Gamma?
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  • Fall '13
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