Exercise 10-13 - $2,400,000 X $2,100,000 = $700,000 10-26...

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EXERCISE 10-13 (20–25 minutes) 1. Land . ................................................................................ 350,000 Building. ........................................................................... 1,050,000 Machinery and Equipment. ........................................ 700,000 Common Stock (12,500 X $100) . ................... 1,250,000 Paid-in Capital in Excess of Par . .................. 850,000 ($2,100,000 – $1,250,000) The cost of the property, plant and equipment is $2,100,000 ($12,500 X $168). This cost is allocated based on appraisal values as follows: Land $400,000 $2,400,000 X $2,100,000 = $350,000 Building $1,200,000 $2,400,000 X $2,100,000 = $1,050,000
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Unformatted text preview: $2,400,000 X $2,100,000 = $700,000 10-26 2. Buildings ($105,000 plus $161,000) . ...................... 266,000 Machinery and Equipment. ....................................... 135,000 Land Improvements . ................................................... 122,000 Land . ................................................................................ 18,000 Cash. ...................................................................... 541,000 3. Machinery and Equipment. ....................................... 265,300 Cash. ...................................................................... 265,300 ($10,500 plus $254,800, which is 98% of $260,000.)...
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Exercise 10-13 - $2,400,000 X $2,100,000 = $700,000 10-26...

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