Question
In: Accounting
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Marigold...
At December 31, 2019, certain accounts included in the property,
plant, and equipment section of Marigold Corporation’s statement of
financial position had the following balances:
| Land | $309,540 | |
| Buildings—Structure | 882,850 | |
| Leasehold Improvements | 705,000 | |
| Equipment | 844,630 |
During 2020, the following transactions occurred:
| 1. | Land site No. 621 was acquired for $799,520 plus a fee of $6,900 to the real estate agent for finding the property. Costs of $33,280 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,590. | ||||||||||||||||
| 2. | Land site No. 622, which had a
building on it, was acquired for $559,600. The closing statement
indicated that the land’s assessed tax value was $308,960 and the
building’s value was $101,560. Shortly after acquisition, the
building was demolished at a cost of $27,570. A new building was
constructed for $339,820 plus the following costs:
The building, completed and occupied on September 30, 2020, is expected to have a 30-year useful life. |
||||||||||||||||
| 3. | A third tract of land (No. 623) was acquired for $264,880 and was put on the market for resale. | ||||||||||||||||
| 4. | During December 2020, costs of $88,750 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, and is not expected to be renewed. | ||||||||||||||||
| 5. | Equipment was purchased under a royalty agreement. The terms of the agreement require Marigold Corporation to pay royalties based on the units of production for the equipment. The equipment’s invoice price was $110,860, freight costs were $3,250, installation costs were $3,210, and royalty payments for 2020 were $15,250. |
(a)
Calculate the balance at December 31, 2020 in each of the following
accounts: Land, Leasehold Improvements, Buildings—Structure,
Buildings—Roof, and Equipment. Ignore the related Accumulated
Depreciation accounts.
| Land | $ | ||
| Leasehold Improvements | $ | ||
| Buildings—Structure | $ | ||
| Buildings—Roof | $ | ||
| Equipment | $ |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Leasehold improvements
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Equipment
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Leasehold
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Buildings
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Leasehold improvements
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Equipment
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Buildings
891,820
Leasehold improvements
660,250
Equipment
883,570
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Land site number 621 was acquired for $859,050. In addition, to
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Buildings
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Equipment
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Buildings 1,606,000
Equipment 1,401,600
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Equipment
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The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained...
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Land
$
111,000
Building
$
496,000
Less:
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(155,000
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341,000
Equipment
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Less:
Accumulated depreciation
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Total property,
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following:
Property, plant, and equipment:
Land
$
111,000
Building
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Less: Accumulated depreciation
(155,000
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341,000
Equipment
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Total property, plant, and equipment
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The land and building were purchased at the beginning of 2016.
Straight-line depreciation is used and a residual value of $31,000
for the building is anticipated.
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