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Alex787 [66]
3 years ago
5

Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows

: Land $ 180,000 Building 300,000 Furniture 120,000 Total $ 600,000 Required Compute the amount to be recorded on the books for each asset. Record the purchase in a horizontal statements model.
Business
1 answer:
Inessa [10]3 years ago
3 0

Answer:

1.Allocated cost

Land 150,000

Building 250,000

Furniture 100,000

Total 500,000

2.Net income cash flow -500,000 IA

Explanation:

1.

Allocated cost

Land =500,000*180,000/600,000=150,000

Building =500,000*300,000/600,000=250,000

Furniture =500,000*120,000/600,000=100,000

Allocated cost

Land 150,000

Building 250,000

Furniture 100,000

Total 500,000

2.

Cash -500,000

Land 150,000

Building 250,000

Furniture 100,000

Net income cash flow -500,000 IA

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I hope this helps
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3 years ago
Read 2 more answers
During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labo
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Answer:

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Explanation:

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Beginning work in process= 112000 - 52000 - 37000 - 26000 + 10000= $7000

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