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Home / Questions / Barbarino Corporation purchased land and a building for $800,000. An appraisal indicates t

Barbarino Corporation purchased land and a building for $800,000. An appraisal indicates t

Barbarino Corporation purchased land and a building for $800,000. An appraisal indicates that the land's market value is $400,000 and the building's market value is $600,000. When recording this transaction Barbarino should debit:

A) Land for $400,000.

B) Land for $320,000.

C) Building for $600,000.

D) Building for $500,000.

 

22) 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. Testing runs of the new machine cost $5,000. What is the cost of the machine?

A) $70,000

B) $75,000

C) $80,000

D) $80,700

23) A company incurred the following costs:

 

Purchase price of land

$210,000

Survey fees

1,000

Payment for demolition of old building on land

30,000

Back property taxes on land

2,000

Paving costs for parking lot

40,000

Fence around perimeter of land

15,000

Lights in parking lot

90,000

Signs for new business

5,000

 

What is the cost of the land?

A) $210,000

B) $243,000

C) $283,000

D) $298,000

 

24) A company incurred the following costs for a new vehicle:

 

Purchase price of delivery truck

$130,000

Sales tax on delivery truck

6,500

Delivery charge on delivery truck

1,300

Special racks for storage put on delivery truck

3,000

Normal repairs to truck before it is used for the first time

1,100

Signs painted on the truck

2,000

Insurance on truck before used in business

3,000

 

What is the cost of the delivery truck?

A) $137,800

B) $140,800

C) $145,800

D) $146,900

25) Land Improvements include:

A) fences.

B) lights in parking lot.

C) neon signs on property.

D) all of the above.

 

26) Which cost is NOT included in the cost of Land Improvements?

A) sprinkler systems for landscaping

B) lights on exterior of new building

C) back property taxes on land parcel

D) B and C

 

27) On January 1, 2015, Roadway Delivery Company purchased a truck for $10,000. Depreciation Expense is $1,000 per year. During the first year of use, the company paid $1,000 to repaint the truck and $2,000 for new tires. What amount is expensed in the first year of use of the truck?

A) $1,000

B) $2,000

C) $3,000

D) $4,000

28) Miscellaneous costs associated with the purchase of new equipment follow:

 

Insurance costs before use of equipment

$1,000

Maintenance costs before use of equipment

500

Insurance costs after use of equipment

1,300

Cost of trial run

700

Training costs for employee to learn how to use equipment

500

 

What is the amount assigned to the new equipment?

A) $1,200

B) $2,200

C) $2,700

D) $4,000

Dec 19 2019 View more View Less

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