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julsineya [31]
3 years ago
11

On june 25, ritts roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. on july 9, ritts acc

epted the seller's counteroffer of $275,000. on october 1, the land was assessed at a value of $280,000 for property tax purposes. on december 22, ritts was offered $305,000 for the land by a national retail chain. at what value should the land be recorded in ritts roofing's records?
Business
2 answers:
Ket [755]3 years ago
3 0

The answer is $275,000 this is because this is the last accepted offer on the land. All others are appraisals or offers but not the recorded value of the land.

Luda [366]3 years ago
3 0

Answer: The correct answer is $275,000.

Explanation: This question is an example of the cost principle. In accounting, property is recorded at the actual cost that it was purchased for. The appraisal amount and offer amounts are not used to record the value of the land. In this situation, the land should be recorded in their records at $275,000, which is the amount that they purchased the land for.

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An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS deprec
OLga [1]

Answer:

book value at the end of year 3 = $115,200

Explanation:

\left[\begin{array}{ccccc}$Year&$Beginning&$Dep-Expense&$Acc. \: Dep&$Ending\\0&-&-&-&400,000\\1&400,000&80,000&80,000&320,000\\2&320,000&128,000&208,000&192,000\\3&192,000&76,800&284,800&115,200\\\end{array}\right]

Year 1 Depreciation expense

400,000 x 20% = 80,000

Year 2 Depreciation expense

400,000 x 32% =128,000

Year 3 Depreciation expense

400,000 x 19.2% = 76,800

Book value = carrying value - depreciation for the year

or

purchase - accumulated depreciation

3 0
2 years ago
Madison Corporation purchased 40% of Jay Corporation for $300,000 on January 1. On June 20 of the same year, Jay Corporation dec
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Answer:

$420,000

Explanation:

Given the above information,

Dividend

= $75,000 × 40%

= $30,000

Share in income

= $375,000 × 40%

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Balance in investment account

= Beginning balance + Share in income - Dividend

= $300,000 + $150,000 - $30,000

= $420,000

Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000

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8 0
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Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 201
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Answer:

Hawkins Inc.

For 2017, the amount of income taxes payable for Hawkins Inc. is:

= $572,600.

Explanation:

a) Data and Calculations:

2017 tax rate = 35%

Pre-tax accounting income =   $1,800,000

2018 Rent from Barrett Co.            64,000

Less:

Exempt Municipal bond income  (80,000)

Tax Depreciation (in excess of

 book depreciation)                     (40,000)

2018 Installment sales revenue (108,000)

Adjusted taxable income       $1,636,000

Income tax (35%)                        572,600 (35% of $1,636,000)

Tax expense (provision)             630,000 (35% of $1,800,000)

b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income.  The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.

5 0
2 years ago
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