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Exercise 10-13

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

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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 Machinery & Equipment \$800,000

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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 2...

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