What should be recorded for the purchase of the land?

The cost recorded for the equipment was: What amount should be recorded for the purchase of the land? Kansas Enterprises purchased equipment for $73,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $8,550 at the end of five years.

What was the cost of the Able Company land purchase?

Able Company purchased land and incurred the following costs purchase price $1,000,000 excavation costs 100,000 razing old building 25,000 broker fees 20,000 cost of property taxes 50,000 What’s the cost of the land? $1,145,000 (1,000]

What was the cost of the land purchase?

Other costs associated with the equipment were: transportation costs, $2,600; sales tax paid $3,500; and installation cost, $3,000. The cost recorded for the equipment was: What amount should be recorded for the purchase of the land?

When did Katz Corp pay for the purchase?

Katz paid for the purchase on March 8 A) this item should be included as part of the cost of the equipment B) this item should be considered as a revenue expenditure A Katz Corp purchased a piece of equipment with a price of $100,000 on 3-1-11 $3,000 freight costs were paid to ship the equipment from the manufacturer

How is the purchase price of land depreciated?

The portion of the purchase price allocated to land will not be depreciated. The portion of the purchase price allocated to the building will be depreciated over a useful life of 39 years.

What should I consider when buying a piece of land?

Financing Considerations. There are a number of variables that can influence your financing options when buying a piece of land. The most important of these is the land itself, its location, and how it will be used.

How are closing costs related to the purchase of land?

The entire purchase price must be allocated between land, building and closing costs. Closing costs consist of title fees, recording fees and attorney fees associated with the purchase.

How to separate the value of land and value of a building?

Calculate the ratio of the land’s value to the total property assessment and the ratio of the building’s value to the total property assessment. For example, if the property assessment was $500,000, the land was $100,000 and the building was $400,000, the land would be 20% of the assessed value and the building would be 80% of the assessed value.