Question
In: Accounting
Watson Company purchased assets of Holmes Ltd. at auction for $1,260,000. An independent appraisal of the...
Watson Company purchased assets of
Holmes Ltd. at auction for $1,260,000. An
independent appraisal of the fair value of the
assets acquired is listed below:
| Land | $ | 208,500 | |
| Building | 278,000 | ||
| Equipment | 556,000 | ||
| Inventories | 347,500 | ||
Required:
Prepare the journal entry to record the purchase of the
assets. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Ananias Company purchased the assets of Saphira Company at an auction for $5,600,000. An independent appraisal...
Ananias Company purchased the assets of Saphira Company at an
auction for $5,600,000. An independent appraisal of the fair value
of the assets is listed below:
Land
$1,900,000
Building
2,800,000
Equipment
2,100,000
Trucks
3,400,000
Assuming that specific identification costs are impracticable
and that Ananias allocates the purchase price on the basis of the
relative fair values, what amount would be allocated to the
Building?
Group of answer choices
$2,118,920
$5,100,000
$2,800,000
$1,537,255
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction for $1,560,000. An...
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction
for $1,560,000. An independent appraisal of the fair value of the
assets acquired is listed below:
Land $171,600
Building $514, 800
Equipment $600,000
Inventories $429,000
On 1 september 2018, ABC Co exchanged land and cash of $8000 for
a plant. The land had a book value of $55,000 and a fair value of
$60,000. The exchange has commercial susbtance.
On 31 November 2018, ABC co sold equipment...
On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company,...
On 1 March 2020 Holmes Ltd enters into a binding agreement with
a New Zealand company, which requires the New Zealand Company to
construct an item of machinery for Holmes Ltd. The cost of the
machinery is NZ$750,000. The machinery is completed on 1 June 2021
and shipped FOB Auckland on that date. The debt is unpaid at 30
June 2020, which is also Holmes Ltd’s reporting date.
The exchange rates at the relevant dates are: 1 March 2011
A$1.00...
On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company,...
On 1 March 2020 Holmes Ltd enters into a binding agreement with
a New Zealand company, which requires the New Zealand Company to
construct an item of machinery for Holmes Ltd. The cost of the
machinery is NZ$750,000. The machinery is completed on 1 June 2021
and shipped FOB Auckland on that date. The debt is unpaid at 30
June 2020, which is also Holmes Ltd’s reporting date. The exchange
rates at the relevant dates are:
1 March 2020 A$1.00...
Watson company
Watson company
On 1 July 2023, Sherlock Ltd leased a processing plantto Holmes Ltd. The plant was...
On 1 July 2023, Sherlock Ltd leased a processing plant
to Holmes Ltd. The plant was purchased by Sherlock Ltd on 1 July
2023 for its fair value of $348 942. The lease agreement contained
the following provisions:
Lease term
3 years
Economic life of plant
5 years
Annual rental payment, in arrears (commencing 30/6/24)
$120 000
Residual value at end of the lease term
$50 000
Residual guaranteed by lessee
$30 000
Interest rate implicit in lease
8%
The...
On 1 July 2020, Sherlock Ltd leased a processing plant to Holmes Ltd. The plant was...
On 1 July 2020, Sherlock Ltd leased a processing plant to Holmes
Ltd. The plant was purchased by Sherlock Ltd on 1 July 2020 for its
fair value of $467 112. The lease agreement contained the following
provisions:
Holmes Ltd intends to return the processing plant to Sherlock
Ltd at the end of the lease term. The lease has been classified as
a finance lease by Sherlock Ltd.
Required
Prepare:
(a) the lease payments schedule for Holmes Ltd (show all...
Watson Public Ltd Company is well known for its welfare activities and employee oriented schemes in...
Watson Public Ltd Company is well known for its welfare
activities and employee oriented schemes in manufacturing industry
from more than ten decade. The company employs more than 800
workers and 150 administrative staff and 80 management level
employees. The Top level management views all the employees at same
level. This can be clearly understood by seeing the uniform of the
company which is Same for all starting from MD to floor level
workers. The company has 2 different cafeterias...
Costco purchased a truck from a company going out of business for $40,000. An appraisal indicated...
Costco purchased a truck from a company going out of business
for $40,000. An appraisal indicated the fair value of the truck to
be $42,000. Costco estimated the truck would provide future
benefits for 3 years and would bring an $8,800 residual value at
the end of the 3-year period.
How much is the depreciation expense for the second year if the
company uses the double- declining-balance method?
When underwriting a loan, a bank will require an independent appraisal (valuation) of the property for...
When underwriting a loan, a bank will require an independent
appraisal (valuation) of the property for which the loan is
intended. It will then provide a loan based on the
lower of the Transaction Price and the Appraised
Value. Explain why a bank does that in terms of the market for real
estate not being efficient, hence that the market mechanism for
real estate does not work.
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