ACC305_Week5_Assignment

ACC305_Week5_Assignment - Week 5 Assignment P11-5 1....

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Week 5 Assignment P11-5 1. $65,000 Allocation in proportion to appraised values at date of exchange: Land Building Land $812,500 × 8% Building $812,500 × 92% 2. $747,500 3. 50 years , $747 500 - , , 47 500$14 000 annual depreciation 4. $ 14,000 Same as prior year, since method used is straight-line.
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1. $65,000 Allocation in proportion to appraised values at date of exchange: Land Building Land $812,500 × 8% Building $812,500 × 92% 5. $ 85,400 3,000 shares @ $25 per share = $75,000 Plus demolition of old building 10,400 $85,400 6. None No depreciation before use. 7. $ 16,000 Fair market value.
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$65,000 Allocation in proportion to appraised values at date of exchange: Land Building Land $812,500 × 8% Building $812,500 × 92% 8. $ 2,400 $16,000 x 15% (1.5 x Straight- line rate of 10%). 9. $ 2,040 ($16,000 - 2,400) x 15%. 10. $ 99,000 Total cost of $110,000 - $11,000 in normal repairs. 11.
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ACC305_Week5_Assignment - Week 5 Assignment P11-5 1....

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