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sergejj [24]
3 years ago
8

An appraiser is trying to find the value of a piece of property. He looks at the land first and figures its value, and then he d

etermines the value of the building by subtracting depreciation factors. After he has determined these facts, he adds the cost of land to the cost of the building to determine the value of the piece of property. Why does he do this?
Business
1 answer:
Setler [38]3 years ago
5 0

Answer:

In appraising, land is never depreciated, as are buildings.

Explanation:

Generally land and buildings are separable assets and are been accounted for separately, even when acquired together.

In the other hand, land asset is not depreciated, because it is considered to have an infinite useful life. This distinctively makes it unique amongst all asset types; it is the only one for which depreciation is prohibited.

Nearly all fixed assets have a useful life, after which they no longer contribute to the operations of a company or they stop generating revenue. During this useful life, they are depreciated, which reduces their cost to what they are supposed to be worth at the end of their useful lives (which is known as salvage value). Land, however, has no definitive useful life, so there is no way to depreciate it.

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Answer:

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Debit Loss on Goodwill Impairment $34,200

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To record the loss on goodwill impairment.

Explanation:

a) Data and Calculation:

Fair value = $820,800

Carrying value of net identifiable assets, including goodwill = $855,000

Goodwill impairment = $34,200 ($855,000 - $820,800)

b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly.  The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom.  Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment.  By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.

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You have received poor grades in Spanish over the last two semesters. How can you improve your grades?
kotykmax [81]

Answer:

The correct answer would be E, Taking Action.

Explanation:

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Answer:

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