on march 1, vivan moore purchased a building and land $600,000. in addition to t
ID: 2371416 • Letter: O
Question
on march 1, vivan moore purchased a building and land $600,000. in addition to the purchase price the company made the following expenditures related to the acquisition $2500 personal property tax on the building as well as reconditiong fees on $25,000. Land was cleared Driveways was added for $20,000 and $12,000 respectively. also an independent apprasial estimated the fair values of assets at $33,000 and $45,000 for the land a building respectively.
COMPUTE BUILDINGS BOOK VALUE AT THE END OF ITS SECOND YEAR IN USE ASSUMING A SALVAGE VALUE OF $30,000 AND AN EXPECTED USEFUL LIFE OF 6 YEARS
SHOW YOUR ALL WORK PLEASE HELP!!!!!
Explanation / Answer
Add all values to 600000 except 2500 and subtract 30000 as salvage this will give the value = 705000 divide it by 6 and the answer is 117500.
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