Exercise 8-5A Allocating costs on the basis of relative market values LO 8-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $835,700 cash. The land was appraised at $192,211 and the building at $768,844. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building, b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Total $ Carver Inc purchased a building and the land on which the building is situated for a total cost of $835 700 cash. The land was appraised at $192,211 and the building at $768,844 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one d. Record the purchase in general journal format Complete this question by entering your answers in the tabs below. ces Required A Required Required C Required Record the purchase in a statemehs model like the following one. (Do not round intermediate calculations. Round your final answers to nearest whole Initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter an minus sign.) CARVER INC. Statements Model Balance Sheet Income Statement Expenses Statement of Cash Flows Net Income Revenue Liabilities Equity . Assets Land Building Cash He Exercise 8-6A Allocating costs for a basket purchase LO 8-1 Pitney Co. purchased an office building, land, and furniture for $716,400 cash. The appraised value of the assets was as follows: Land Building Furniture Total $120,355 232,687 449,326 $802,368 Required a. Compute the amount to be recorded on the books for each asset b. Show the purchase in a horizontal statements model like the following one: c. Prepare the general Journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the amount to be recorded on the books for each asset. (Do not round Itermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Furniture Total $ 0 Pitney Co. purchased an office building, land, and furniture for $716,400 cash. The appraised value of the assets was as follows: Land building Furniture Total $120,355 232.687 449,326 5802360 Required a. Compute the amount to be recorded on the books for each asset b. Show the purchase in a horizontal statements model like the following one c. Prepare the general Journal entry to record the purchase Complete this question by entering your answers in the tabs below. Required A Required Required Show the purchase in a horizontal statements modelike the following one: (Do not round intermediate calculations. Round your final onwers to nearest whole dar. In column, use the initials OA to designate operating activity, IA for inwesting activity, FA for financing activity, NC for ne change in cash and NA for not affected Enter any account balances with a minus sign) PITNEY CO Statements Model Equity Revenue Exponen - Not income Cash Flows Assets + Building + Cash Land Fun b. Show the purchase in a horizontal statements model like the following one: c. Prepare the general journal entry to record the purchase. Complete this question by entering your answers in the tabs below. bed Required A Required B Required Prepare the general journal entry to record the purchase. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) nt View transaction list ces Journal entry worksheet A Record purchase of land, building and furniture for cash. Note: Enter debits before credits General Journal Debit Credit Event 1 Check my B Exercise 8-11A Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreciation LO 8-2, 8-5 BOOK City Taxi Service purchased a new auto to use as a taxi on January 1 Year 1, for $26,300. In addition, City paid sales tax and title fees of $1310 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,980. Required . Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 b&c. Assume that the taxiwas sold on January 1, Year 3. for $21802. Prepare the general Journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. Complete this question by entering your answers in the tabs below. Reg Rog Band Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) Year 1 Year 2 Depreciation expense Req Band > Check 3 Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 b&c. Assume that the taxl was sold on January 1, Year 3, for $21,802. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. Complete this question by entering your answers in the tabs below. Book Print ROGA Req Band Assume that the taxi was sold on January 1, Year 3, for $21,802. Prepare the general Journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) References View transaction et Journal entry worksheet 1 2 Record depreciation expense Note Emer debits before credits Deb Credit General Journal Date Your Journal entry worksheet 2 Record entry for sale of taxi and gain on sale. ok Note: Enter debits before credits. ences General Journal Dobit Credit Dato Year 3 Record entry Clear entry View general Journal w ch 4. Exercise 8-15A Revision of estimated useful life LO 8-7 On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $68,400. The equipment had a three-year estimated life with a $4800 salvage volue Straight line depreciation was used. At the beginning of Year 3. Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3.800 Required Compute the depreciation expense for each of the four years, Year 1-Year 4 ebook Print Depreciation Expense rences Year 1 Year 2 Year 3 Year 4 w Exercise 8-16A Distinguishing between revenue expenditures and capital expenditures LO 8-8 Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,090, and the book value prior to the repair was $4,730. In addition, the company spent $8,500 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $90,700 and related Accumulated Depreciation account at $40,500. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building? Book Value Tow Truck Building