Question

E3-13 (1 goal) determination of the cost of assets [5 to 10 min yesterday Furniture Co.He bought a piece of land and paid $95, effective 000en over a note payable of $270,000.In addition, yesterday paid a property tax arrears by $2,000, property insurance at a cost of $2,500, and $3,000 to level the playing field and demolish the unwanted building.The company then built a building of offices at a cost of $550,000.It also paid $52,000 for a fence around the property, $17,000 by a notice near the entrance and $4,000 for a special batch lighting.Required 1.Determinar the cost of the land, as well as the mejoramicntos of the land and the building, 2.Which of these assets yesterday you depreciate? (Learning 1 goal) Global purchase of active [(10 a 15 min) Maplewood Propertics bought three lots in a subdivision for an inclusive price.]An expert independent valued batches as follows: Maplewood paid $240,000 in cash.E9-14 Lake value of appraisal batch 1 = 90 000, lot 2 = 60 000, lot 3 = 100,000 register the purchase at the newspaper, identifying the cost of each lot in an account separate from land.Round decimals to three places and use their calculated percentages.

Answer 1

Part 1:

Cost of land
Particulars	Amount ($)
Cash paid	95000
Notes payable signed	270000
Property tax arrears	2000
Cost of demolition of unwanted building	3000
Cost of land	370000

Note: It has been assumed that the cash payment of $95000 has been made instead of $95 as shown in the question.

Cost of building:
Particulars	Amount ($)
Cost of building an office	550000
Fencing cost	52000
Entrance notice	17000
	619000

The cost of special batch lighting will have to be charged in the profit and loss account instead of capitalization in the cost of building.

Part 2:

The land is not depreciable asset hence, no depreciating will be charged on the amount of land however, the cost of building shall be depreciated over the useful life of the building either using straight line method or written down value method.

Part 3:

Cost of each lot
Total cost	240000
Batch	Independent value	% to be attributable to batch cost	Batch cost ($)
1	90000	36	86400
2	60000	24	57600
3	100000	40	96000
	250000	100	240000