Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,755,000....

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,755,000. Harding paid $840,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $888,000; Building, $2,640,000 and Equipment, $1,752,000. What value will be recorded for the building?

Expert Solution

The Difference between the Appraised value and fair market value.

Appraised value and fair market value both take on the task of determining the worth of a business or property in a free market. An appraisal value is an expert's best estimation of what the entity is worth, while the fair market value is what it should sell for. The appraised value and fair market value, in theory, should come out to the same amount. However, that often proves not to be the case in practice.

- The value will be recorded for the building is $1377500

Here, the appraisal report indicated that the building's value is $2,640,000 out of the $5280,000 (888,000+2,640,000+1752,000) of total appraised value, we can assign 5% or .054 (Given) of the total cost of $2,755,000 to the building,

= $2,755,000*5/100

= $1377500

OR

= 2755,000 * [2640,000/(888,000+2,640,000+1752,000)]

=2755,000*2640,000/5280,000

=2755,000 * 0.5

=13,77,500

ekkarill92 answered 1 year ago

20. Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding...

20. Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,235,000. Harding paid $280,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $296,000; Building, $880,000 and Equipment, $584,000. (Round your intermediate percentages to the nearest whole number: i.e 0.054231 = 5%. Do not round any other intermediate calculations.) Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates...

1.Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000....

1.Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $370,000; Building, $1,100,000 and Equipment, $730,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above assets? Group of answer choices a。 Land 242,250 Building 712,500 Equipment...

Required information [The following information applies to the questions displayed below.] Harding Corporation acquired real estate...

Required information [The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,755,000. Harding paid $840,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $888,000; Building, $2,640,000 and Equipment, $1,752,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above...

Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a building....

Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a building. Beaumont has the property appraised after the purchase. The information is below: Land Purchase 375,927 Land Appraisal 175,000 Improvement appraisal 87,000 Building Appraisal 210,000 1 Allocate the total cost to the three assets Asset Description Appraisal Values Percent of Total Appraised Value x total acquisition cost = allocated cost Land Land improvements Building Totals 1...

Mining Corp acquired a parcel of land for $4,000,000. It was estimated that the property contained...

Mining Corp acquired a parcel of land for $4,000,000. It was estimated that the property contained 300,000 tons of mineral reserves. Federal law requires that mined properties be restored to a natural condition after mining is completed. It is expected that restoration costs will total $400,000 and that the restored land could be resold for $200,000. During the year, the company extracted 25,000 tons (of which 15,000 tons were sold) of mineral reserves from the property. 1.try to record the...

Property, plant, and equipment, at cost: Land. . . . . . . . . ....

Property, plant, and equipment, at cost: Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000 Buildings. . . . . . . . . . . . . . . . . . . . . . . . 700,000 Less: Accumulated depreciation. . . . . . (344,000) Equipment. . . . . . . . . . ....

Boyle Company purchased a property (including land and building). The company acquired the property in exchange...

Boyle Company purchased a property (including land and building). The company acquired the property in exchange for a 15-year mortgage for $1,800,000. Their insurance company appraised the components as follows: Land $400,000 Building $1,400,000 Parking Lot $200,000 What should be the cost basis for the building?

1. Millburn Company has acquired a property that included both land and a building for $530,000....

1. Millburn Company has acquired a property that included both land and a building for $530,000. The company hired an appraiser who has determined that the market value of the land is $320,000 and that of the building is $480,000. Prepare the journal entry to record the purchase of these assets. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) 2. Calculate the depreciation expense using the straight-line and units-of-production methods for all...

Fargo's property plant and equipment consist of a building with cost of $ 840,000 and a...

Fargo's property plant and equipment consist of a building with cost of $ 840,000 and a salvage value of $40,000 with a 15 year life purchased on 6/1/14 and equipment that cost $88,000 and salvage value of $4,000 with a 5 yr life purchased on 9/1/17. Fargo incurred delivery and installation charges of 8,000 on equipment. Fargo spent 39,000 painting the building during 2019. On 1/1/19 fargo revised estimate on life of building. fargo now estimates that the building will...

The definition of real property includes: The definition of real property includes: A. only land and...

The definition of real property includes: The definition of real property includes: A. only land and buildings, the rights and privileges cannot be included B. A and C C. all of the rights and privileges of the use of real estate D. only that property that can be seen and touched 2. The yield curve is: A. all of the above B. a diagram of interest rates on corporate bonds to their maturity C. a diagram of interest rates on...

Question