Reference no: EM131118171
Classification of Acquisition and Other Asset Costs At December 31, 2009, certain accounts included in the property, plant, and equipment section of Reagan Company's balance sheet had the following balances.
Land $230,000
Buildings 890,000
Leasehold improvements 660,000
Machinery and equipment 875,000
During 2010 the following transactions occurred.
1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000.
2. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $330,000 plus the following costs.
Excavation fees $38,000
Architectural design fees 11,000
Building permit fee 2,500
Imputed interest on funds used
during construction (stock financing) 8,500
The building was completed and occupied on September 30, 2010.
3. A third tract of land (site number 623) was acquired for $650,000 and was put on the market for resale.
4. During December 2010 costs of $89,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2012, and is not expected to be renewed.
5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,000, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2010 were $17,500
(a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2010.
Land Leasehold improvements
Buildings Machinery and equipment
Disregard the related accumulated depreciation accounts.
(b) List the items in the situation that were not used to determine the answer to (a) above, and indicate where, or if, these items should be included in Reagan's financial statements.
(AICPA adapted)
Ages of couples applying for marriage licenses
: A student wanted to study the ages of couples applying for marriage licenses in his county. He studied a sample of 94 marriage licenses and found that in 67 cases the husband was older than the wife.
|
How are business consumers similar to final consumers
: How are business consumers similar to final consumers? Different from final consumers? Include the concept of derived demand in your response.
|
E-commerce and e-marketing
: Explain the terms E-Commerce and E-Marketing. Which is more important? Why? Cite five of the key Internet roles for marketing
|
Confidence interval for the proportion of left-handers
: Suppose that you take a random sample of 10,000 Americans and find that 1,111 are left- handed. You perform a test of significance to assess whether the sample data provide evidence that more than 10% of all Americans are left-handed, and you calc..
|
Classification of acquisition and other asset costs
: During December 2010 costs of $89,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2012, and is not expected to be renewed.
|
Represent new potential customers
: Sally's Pet Sitting Service was able to acquire a list of all the customers of Preuss Pets in Lansing. Sally thought that since both her business and Preuss concerned pets, that the list would represent new potential customers. Sally acquired a:
|
Weapons and aggression case study
: (WA) Recall that the hypothesis is that a person can name an aggressive word more quickly if it is preceded by a weapon word prime than if it is preceded by a neutral word prime.
|
Positive relationship with disgruntled residents
: It finally opened in 1988. Public relations became a key tool for maintaining a positive relationship with disgruntled residents and commuters. This area of PR is referred to as:
|
Adhd treatment case study
: (AT) What is the correlation between the participants' correct number of responses after taking the placebo and their correct number of responses after taking 0.60 mg/kg of MPH? Compute the 95% confidence interval on the population correlation
|