A Company Acquired Property That Included Land,building and Equipment for a Total

question 175

Multiple Choice

A company acquired property that included land,building and equipment for a total cost of $163,000.The land was appraised at $87,500,the building at $35,000,and the equipment at $52,500.What should be the allocation of the total cost in the accounting records?

• A)Land $75,000;Building $30,000;Equipment $45,000
• B)Land $75,000;Building $30,800;Equipment $46,200
• C)Land $87,500;Building $35,000;Equipment $52,500
• D)Land $81,500;Building $32,600;Equipment $48,900

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Definitions:

Quarterly Sales Forecast

An estimate of the amount of sales expected to be achieved in a specific quarter, aiding in business planning and resource allocation.

June Purchases

Refers to the acquisitions or buying activities carried out in the month of June, possibly for a business or personal needs.

Budgeted Profit and Loss Statement

A financial report that forecasts the revenue, expenses, and net income for a specific period, helping businesses in financial planning and control.

Uncollectible Accounts

Financial debts within accounts receivable that are considered unlikely to be recovered because customers are unable to fulfill payment obligations.