Allocation to individual assets upon lump sum purchase

Related BrainMass Solutions

• Straight line depreciation

  Prepare a table to allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. In case of lump sum purchase, the lump sum is allocated in proportion of the market value of the assets.

• Applying Cost Principle to Plant Assets, etc.

  Suppose a firm purchase plant, equipment, and land for a lump-sum of $500.

• How is the cost principle applied to plant assets?

  The cost of a lump-sum purchases on the other hand is allocated among the individual assets according to their relative market or estimated values. How the cost principles applied to plant assets is determined.

• Cost Principle, Lump-sum Purchases, Plant Assets & Acquisitions

  389632 Cost Principle, Lump-sum Purchases, Plant Assets & Acquisitions How is the cost principle applied to plant assets, acquisitions, including lump-sum purchases?

• Harbour Inc basket purchase of land, building, equipment: allocate purchase price

  70670 Purchase of land, building, equipment: allocate purchase price HARBOUR INC ACQUIRED LAND, BUILDING & EQUIPMENT AT A LUMP-SUM PRICE OF $1,840,000.

• Bulk purchases is usually related to real estate, Land and B

  Bulk purchases are generally handled in the same way that what's called lump-sum purchases or lump-sum assets are handled. Each transaction is handled separately, within the same transaction (if that makes sense at all).

• Various Finance Questions & Ratio Analysis

  $45,000 today in one lump sum. 20. $70,000 paid to you in seven equal payments of $10,000 at the end of each of the next seven years. 21. $80,000 paid in one lump sum 7 years from now. 22.

• Western Bank & Trust: Depreciation

  572858 Western Bank & Trust: Depreciation Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars.

• Tax Consequences of the Sale of Business

  Allocation of consideration paid for a business The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset.