ACC201 module 8 quiz

Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $269,000 for the lot plus $164,000 for the old building. The company pays $26,200 to tear down the old building and $38,730 to fill and level the lot. It also pays a total of $1,545,568 in construction costs—this amount consists of $1,453,800 for the new building and $91,768 for lighting and paving a parking area next to the building.

Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Liltua Company pays $385,000 for real estate plus $20,405 in closing costs. The real estate consists of land appraised at $214,200; land improvements appraised at $102,000; and a building appraised at $193,800.

Allocate the total cost among the three purchased assets.(Round your "Apportioned Cost" answers to 2 decimal places.)

Prepare the journal entry to record the purchase.(Round your answers to 2 decimal places.)

In early January 2013, NewTech purchases computer equipment for $119,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $24,000.

Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.

In early January 2013, NewTech purchases computer equipment for $160,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $28,000.

Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.

6.

value:
10.00 points