31) Tanner Company acquired equipment #1, equipment #2, and equipment #3, for $600,000. Equipment #1 is appraised at $240,000, equipment # 2 is appraised at $310,000 and equipment #3 is appraised for $110,000.The cost of equipment #2 is:

A) $220,218.

B) $200,000.

C) $281,818.

D) $310,000.

32) Bixby Corporation purchased land and a building for $800,000. An appraisal indicates that the land's value is $400,000 and the building's value is $500,000. When recording this transaction Galaxy should debit:

A) Land for $800,000.

B) Building for $355,555.

C) Land Improvement-Building for $500,000.

D) Building for $444,444.

33) The Spa Company purchased land, buildings and equipment for $830,000. The land has been appraised at $300,000, the buildings at $510,000 and the equipment at $90,000. The journal entry to record this transaction will include a debit to:

A) land for $300,000.

B) land for $470,333.

C) building for $470,333.

D) equipment for $276,667.

34) A machine is purchased for $70,000. The transportation costs were $4,000, installation costs were $1,000 and taxes on the purchase price were $700. The cost basis of the machine is:

A) $70,000.

B) $74,000.

C) $75,700.

D) none of the above.

35) The Meat Company purchased assets for a lump sum price of $1,000,000. The assets purchased had an appraised value of:

Equipment$560,000

Land$210,000

Building$630,000

 

Prepare the appropriate journal entry if The Meat Company paid cash for this transaction.

 

 

36) Auto Shop, Inc., incurred the following costs in acquiring plant assets:

a.Purchased land for a $100,000 down payment and signed a $75,000 note payable for the balance.

b.Delinquent property tax of $2,500 and legal fees of $1,000 had to be paid before the land could be purchased.

c.$12,000 was paid to demolish an unwanted building on the land.

d.Architect fee of $7,000 was paid for the design of a new office building.

e.An office building was constructed at a cost of $500,000.

f.Interest cost on a construction loan for the building totaled $6,000

g.$17,500 was paid for fencing, $12,000 was paid for landscaping, and $55,000 was paid for paving the parking lot.

Determine the cost of the land, land improvements, and building.

37) Determine the cost of the land, based upon the following data:

 

Purchase price of the land$210,000

Survey fees1,000

Commission20,000

Payment for demolition of old building on land30,000

Back property taxes2,000

Paving parking lot40,000

Fencing15,000

38) Determine the cost of the dump truck, based upon the following data:

 

Purchase price of the dump truck$130,000

Sales tax6,500

Delivery charge1,300

Special wheels for the truck to be installed by the dealer3,000

Normal repairs to the machine after it has been in use1,100