Business, 16.07.2021 22:10 challenggirl

McCoy’s Fish House purchases a tract of land and an existing building for $900,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,000. The company also pays $12,000 in property taxes, which includes $8,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $45,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,000 and pays an additional $10,000 to level the land. Required:Determine the amount McCoy’s Fish House should record as the cost of the land.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 22:00

Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.

Answers: 2

Answer

Business, 22.06.2019 17:40

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.

Answers: 3

Answer

Business, 23.06.2019 00:30

Which of the following emails should he save in this folder instead of deleting or moving it to another folder

Answers: 1

Answer

Business, 23.06.2019 03:20

Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe

Answers: 2

Answer

You know the right answer?

McCoy’s Fish House purchases a tract of land and an existing building for $900,000. The company plan...

Questions