Yella Company Made a Lump Sum Purchase of an Office

question 151

Essay

Yella Company made a lump sum purchase of an office building, including the land and some fixtures, for cash of $160,000. The tax assessments for the past year reflected the following: Land, $22,500; Building, $58,500; and Fixtures, $9,000. Prepare the journal entry to record the acquisition:

Understand the Realistic Accuracy Model (RAM) and its stages.

Analyze the accuracy of personality judgments from close acquaintances versus self-judgments.

Identify factors that contribute to the improvement of personality judgment accuracy.

Understand the importance of accurate self-knowledge and its relation to mental health.

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Definitions:

Net 25

A payment term indicating that the full payment is due within 25 days from the invoice date.

365-Day Year

A calendar basis used in various financial calculations, assuming the year consists of exactly 365 days for simplifying interest and other time-sensitive computations.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity during peak periods.

Short-Term Debt

Liabilities or loan obligations that are due to be paid within a year.