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Buildings: All costs incurred when acquiring, constructing, or bringing a building into the proper condition for its intended use are included in its historical cost. These costs also include any fees related to building permits, surveys, inspections and other legal, government or professional fees. 

The cost to bring land into the proper condition for constructing a new building is typically considered a land cost. This may include the cost of tearing down an old building (less its salvage value). However, if the company previously owned and used the old building, the cost of tearing it down in order to re-construct it would simply be included in the calculation of a gain or loss recognized in the disposal of the old building (an asset previously on the balance sheet). 

Leasehold improvements: The value of leasehold improvements typically revert to the owner at the end of the lease term. As a result, the proper treatement of improvements to leased property is to capitalize them in a seperate account named 'Leasehold Improvements' and to amortize them over their useful life or over the life of the lease, whichever is shorter. 

Self-constructed assets: When a building is constructed by the company itself, the costs associated with its construction must be capitalized. The costs associated with direct labour and materials are easily allocated. However, the company must make a decision about allocating overhead costs, management time, and other indirect costs or burdens. 

Determining the Costs of Assets

Gegax Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building. a. Purchase price of four acres of land.................................$200,000 b. Additional dirt and earthmoving...........................................$8,100 c. Fence around th

Building and Analyzing a Monthly Profit Report

Background: Performance Drinks makes four different kinds of sports drinks. Those drinks are as follows: - Basic - Hydration - Intensity - Post-Workout You recall from your Management Accounting class that product costs are comprised of: - Direct Materials - Direct Labor - Manufacturing Overhead That report is follo

LEED and SunEdison

Please see the attached file. 1. What is LEED? (Functions, benefit) Certification of Silver, Gold and Platinum. Example of LEED in Toledo or Findlay. 2. What is Sun of Edison? Explain Solar, Solar Panels, and the Sun Edison Model.

Reporting and Repairing Damages

Recent river flooding damaged a part of the Town of Brownville Library. The library building is over 70 years old and is located in a part of the town that is on the national historic preservation register. Some of the costs related to the damage included the following. The building wiring had to be replaced. Since the wir

Use Excel solver to create a model for a tire manufacturer

See attached Excel file. A tire manufacturer produces two types of heavy truck tires (standard and custom) using three operations. The time per operation to produce the tires is given as follows: Operation standard custom total operation time per week compounding 2.5 2.0 1500 building

DNA Company: Instructional strategies for meeting objectives

See attached files. DNA (company) has trouble maintaining a workflow that promotes seamless transitions between phases. The result is they are unable to meet project finish dates. Choose instructional strategies for the objectives in the attachment below. Be sure to analyze the strengths and weaknesses of new technologies ver

Hampton Ship Building: Sample Proposal

Company name: Hampton Ship Building Company Product: Personal recreational motorized boats, eco-friendly Approach Model: Entrepreneurial Using the above information develop a proposal that would include a company overview of pro-forma, its business principles, its contributing team members including details about their skil


Mary Beth is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2010, she incurred a loss, for tax pu

Basis of Property Received As a Gift

Basis of Property Received as a Gift. Doug receives a duplex as a gift from his uncle. The uncle’s basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMVs of $40,000 and $80,000, respectively. No gift tax is paid by Doug’s uncle at the time of the gift. a. To determine gain, wha


Running Head: PUBLIC ADMINISTRATION Role of Public Administrator Solution - 1 An administrator is responsible for managing governmental plans and policies along with the management of public goods so that citizens and public of his state can be satisfied. He is responsible for addressing areas like prolonged economic g

Step by Step Solutions

Use the following information for questions 18 and 19. Racker Co. purchased land as a factory site for $600,000. Racker paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insuran

Dispositions, Including Condemnation, and Demolition

Presented below is a schedule of property dispositions for Frank Thomas Co. Schedule of Property Dispositions Cost Accumulated Cash Fair Market Nature Depreciation Proceeds Value of Disposition Land 40,000 -- 31,000 31,000 Condemnatio

Depreciation and Minimum Liability Computation

E20-11 (Minimum Liability Computation, Entry) The following information is available for McGwire Corporation's defined benefit pension plan for the years 2007 and 2008. December 31, 2007 2008 Accrued pension cost balance $ -0- $ 45,000 Accumulated benefit obligation 260,000 370,000 Fair value of plan assets 255,000 300,000

Brueggen Company: change in estimate and error correction

(Change in Estimate and Error Correction) Brueggen Company is in the process of preparing its financial statements for 2007. Assume that no entries for depreciation have been recorded in 2007. The following information related to depreciation of fixed assets is provided to you: Brueggen purchased equipment on January 2,

Comparison of Entity Formations for Cara, Bob and Steve

C11-56 Comparison of Entity Formations. Cara, Bob, and Steve want to begin a business on January 1, 2006. The individuals are considering three business forms?C corporation, partnership, and S corporation. ? Cara has investment land with a $36,000 adjusted basis and a $50,000 FMV that she is willing to contribute. The land ha

Earnings effects of changes in useful lives and salvage values

Assume that Major Motors Corporation, a large automobile manufacturer, reported in a recent annual report to shareholders that buildings had an original cost of $4,694,000,000. 1. Major Motors uses the straight line depreciaiton method to depreciate the buildings over a useful life of 34 years. 2. Assume that the ratio of e

Buying a home and insurance

Mr. and Mrs. Green have come to you for advice regarding their estate. They have several questions, which are listed below. They would like your advice regarding estate planning, including a will and/or a trust. Prepare answers to Mr. and Mrs. Green's questions below. Be as detailed as possible and use documented research to sup

Concept of Green Paper

Research and identify the present state of HBI. Your research should include the market trends of the two product lines, green home building and high-design manufactured housing. Identify and assess the impact of economic, global, demographic, and competitive trends that you deem important for the industry. After completing

Fred Couple Company: Dealing with Transactions

Below are transactions related to Fred Couples Company. a. The city of Pebble Beach gives the company 5 acres of land as a plant site. The market value of this land is determined to be $81,000. b. 13000 shares of common stock with a par value of $50 per share are issued in exchange for land and buildings. The property has

Workplace Continuity and Contingency Planning

Please help with the following problem. Provide at least 200 words in the solution. Knowing what we know now, what types of changes would you introduce to a newly rebuilt World Trade Center? This is an opportunity to be creative as there such large numbers of lives and corporate assets at stake in a full-fledged disaster;

Purchase of an Office Building

You are contemplating the purchase of an office building. Next year net rental income will be $400,000, which will grow at 4% per year. You believe that in 10 years the office building could be sold for $7.4 million. The appropriate discount rate for investments of this type is 12%. What is the most you should be willing to pay

5. (Treatment of Various Costs)

5. (Treatment of Various Costs) Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $ 520 Architect's fees

Printer company analysis

Pensacola Printer Company manufactures printers for use with home computing systems. The firm currently manufactures both the electronic components for printers and the plastic cases in which the devices are enclosed. Jim Cassanitti, the production manager, recently received a proposal from the Universal Plastics Corporation to