Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $23,000 8,500 43,000 4,700 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively. Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building.
Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $23,000 8,500 43,000 4,700 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively. Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 53P
Related questions
Question
![Title insurance
Legal fees for drawing the contract
Pro-rated property taxes for the period after acquisition
$23,000
8,500
43,000
4,700
State transfer fees
An Independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively.
Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping.
Required:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building.
Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and
grading the land in preparation for the construction of a new building.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)
Initial
Valuation
Assets
Land
3,145,740 X
Building
2$
887,260 X
Land improvements
$4
132,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2Fd8b81818-c25d-462a-b159-d74b6ae7eb02%2F0ajc7cg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Title insurance
Legal fees for drawing the contract
Pro-rated property taxes for the period after acquisition
$23,000
8,500
43,000
4,700
State transfer fees
An Independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively.
Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping.
Required:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building.
Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and
grading the land in preparation for the construction of a new building.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)
Initial
Valuation
Assets
Land
3,145,740 X
Building
2$
887,260 X
Land improvements
$4
132,000
![Exercise 10-3 (Algo) Acquisition costs; lump-sum acquisition [LO10-1, 10-2]
Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following
expenditures in connection with the purchase of the land and building:
Title insurance
Legal fees for drawing the contract
Pro-rated property taxes for the period after acquisition
State transfer fees
$23,000
8,500
43,000
4,700
An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively.
Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping.
Required:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building.
Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and
grading the land in preparation for the construction of a new building.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)
Initial
Valuation
Assets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2Fd8b81818-c25d-462a-b159-d74b6ae7eb02%2Fuqlxjst_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 10-3 (Algo) Acquisition costs; lump-sum acquisition [LO10-1, 10-2]
Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following
expenditures in connection with the purchase of the land and building:
Title insurance
Legal fees for drawing the contract
Pro-rated property taxes for the period after acquisition
State transfer fees
$23,000
8,500
43,000
4,700
An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively.
Shortly after acquisition, Samtech spent $89,000 to construct a parking lot and $47,000 for landscaping.
Required:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building.
Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Samtech spent $86,000 clearing and
grading the land in preparation for the construction of a new building.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)
Initial
Valuation
Assets
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