U1Ch10 - Giovanna Loi U1Ch10 E10-1 Capitalized Cost of...

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Giovanna Loi U1Ch10 E10-1 Capitalized Cost of Land: Purchase Price: $60,000 Demolition Price: $4,000 Capitalized Cost of Land: $ 64,000 Capitalized Cost of Building: Architect Fee: $12,000 Legal Fees: $2,000 Taxes: $3,000 Construction: $500,000 Interest: $5,000 Salvaged Materials: ($2,000) Capitalized Cost of Building: $ 520,000 E10-2 Account Title PR Debit Credit Machinery 48,900 Accounts Payable 48,900 Expense 900 Cash 900 E10-3 1. Land: 3.3 x .75 = 2,475,000 Building: 1.1 x .25= 275,000 4.4 2,750,000 +Insurance 16,000 + Legal Fees 5,000 + Taxes 36,000 + Transfer Fees 4,000 $2,811,000 Land Improvements: Parking Lot: $82,000 Landscaping: $40,000
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2. $2,811,000 + Demolition: 250,000 +Cleaning & Grading: 86,000 -Salvaged Materials: (6,000) $3,141,000 E10-6 Fair Value of Consideration exchanged $17,000,000 Less: Fair Value of Net Assets $23,000,000 Less: Fair Value of Liabilities $ 9,500,000 Goodwill $3,500,000 E10-8 Fair Value Building A $450,000 45% = $405,000 Building B $250,000 25% = $225,000
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U1Ch10 - Giovanna Loi U1Ch10 E10-1 Capitalized Cost of...

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