demolition of the old building were sold for $2,000.
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
2. E 10-8
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land.
Determine the initial valuation of the buildings and the land.
3. E 10-14
Funseth Farms Inc. purchased a tractor in 2013 at a cost of $30,000. The tractor was sold for $3,000 in 2016. Depreciation recorded through the disposal date totaled $26,000.
1. Prepare the journal entry to record the sale.
2. Assuming that the tractor was sold for $10,000, prepare the journal entry to record the sale.
4. E 10-18
The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to complete the exchange which has commercial substance.
1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.
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