Sam Corporation

Students will calculate the cost that should be assigned to land, buildings, and equipment and provide the journal entry to record the acquisition of these assets.

Sam's Corporation paid $550,000 to acquire land, building, and equipment. At the time of the acquisition, Sam paid $50,000 to have the property appraised. The following values were determined from the appraisal:
Land 180,000
Building 285,000
Equipment 175,000
 
Respond to the following questions:
What cost should Sam assign to the land, buildings, and equipment, respectively?
How should the journal entry be recorded on the corporation- books to describe this acquisition?
Why is it necessary to allocate a lump sum purchase amount among the individual assets acquired?
What are the characteristics that an asset must have for it to be classified as property, plant, and equipment?
Generally accepted accounting principles (GAAP) requires that property, plant, and equipment should be recorded at historical cost. What are the advantages of recording property, plant, and equipment at historical cost?

Answer Detail

Get This Answer

Save Time & improve Grades

  • Questions Asked 685078
  • Experts 5361
  • Total Answered 659177

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Our Amazing Features

  • Plagiarism Free Work

    Our experts provide 100 % original and customized work On time Delivery

  • 24*7 Customer Support

    We provide 24*7 online customer supports via online chat or email

  • Cover All Subject

    JQA is one stop solution for all subject’s Assignment. We can provide assignment help for almost all subjects.

  • Best Industry experts

    We have 1000+ PHD and Post Graduate experts.

Refer Just 5 Friends to Earn More than $1000

  • Your Approx Earning

    USD 2350/year

Your Custom Referral Link:

Hire a tutor

Assignment hero

USA

I am an experienced tutor of 7+ years in all math, physics, and Spanish, SAT, and ACT tutoring. I love working with students and seeing them improve on and grasp concepts!

Guru

USA

Need help in Maths and science ? Look no further . contact me so i can help you . i have been a academic tutor for 10 years . Hire me for help in assignments.

Vikas

USA

After 13 years of working with students across the country, we have the experience and knowledge to provide the best possible academic support for your academics.

Rgaurav

India

I have experience teaching AP Calculus AB and BC, Algebra I, Algebra II, Trigonometry, SAT Math Preparation, and Geometry. I have tutored students ranging from 8th grade to college students.

Invite Tutor