Acguisition and Valuation of PP&E Cost of Land Includes all costs to acquire land and ready it for use. Costs typically include: (1)the purchase price; (2)closing costs,such as title to the land,attorney's fees,and recording fees; (3)costs of grading,filling,draining,and clearing: (4)assumption of any liens,mortgages,or encumbrances on the property;and (5)Additional land improvements that have an indefinite life. Chapter LO 2 Identify the costs to include in initial valuation 10-6 of property,plant,and equipment
Chapter 10-6 Includes all costs to acquire land and ready it for use. Costs typically include: Cost of Land Acquisition and Valuation of PP&E (1) the purchase price; (2) closing costs, such as title to the land, attorney ’s fees, and recording fees; (3) costs of grading, filling, draining, and clearing; (4) assumption of any liens, mortgages, or encumbrances on the property; and (5) Additional land improvements that have an indefinite life
Acguisition and Valuation of PP&E Cost of Buildings Includes all costs related directly to acquisition or construction. Costs typically include: (1)materials,labor,and overhead costs incurred during construction and (2)professional fees and building permits. Chapter LO 2 Identify the costs to include in initial valuation 10-7 of property,plant,and equipment
Chapter 10-7 Includes all costs related directly to acquisition or construction. Costs typically include: Cost of Buildings Acquisition and Valuation of PP&E (1) materials, labor, and overhead costs incurred during construction and (2) professional fees and building permits
Acguisition and Valuation of PP&E Cost of Equipment Include all costs incurred in acquiring the equipment and preparing it for use. Costs typically include: (1)purchase price, (2)freight and handling charges (3)insurance on the equipment while in transit, (4)cost of special foundations if required, (5)assembling and installation costs,and (6)costs of conducting trial runs. Chapter LO 2 Identify the costs to include in initial valuation 10-8 of property,plant,and equipment
Chapter 10-8 Include all costs incurred in acquiring the equipment and preparing it for use. Costs typically include: Cost of Equipment Acquisition and Valuation of PP&E (1) purchase price, (2) freight and handling charges (3) insurance on the equipment while in transit, (4) cost of special foundations if required, (5) assembling and installation costs, and (6) costs of conducting trial runs
Acquisition and Valuation of PP&E E10-1 (Acquisition Costs of Realty)The following expenditures and receipts are related to land,land improvements,and buildings acquired for use in a business enterprise.Determine how the following should be classified: Classification (a)Money borrowed to pay building contractor Notes Payable (b)Payment for construction from note proceeds Building (c)Cost of land fill and clearing Land (d)Delinguent real estate taxes on property Land assumed (e)Premium on insurance policy during Building construction (f)Refund of 1-month insurance premium because construction completed early (Building) Chapter LO 2 Identify the costs to include in initial valuation 10-9 of property,plant,and equipment
Chapter 10-9 E10-1 (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. Determine how the following should be classified: Acquisition and Valuation of PP&E (a) Money borrowed to pay building contractor (b) Payment for construction from note proceeds (c) Cost of land fill and clearing (d) Delinquent real estate taxes on property assumed (e) Premium on insurance policy during construction (f) Refund of 1-month insurance premium because construction completed early
Acquisition and Valuation of PP&E E10-1 (Acquisition Costs of Realty)The following expenditures and receipts are related to land,land improvements,and buildings acquired for use in a business enterprise.Determine how the following should be classified: Costs of: (g)Architect's fee on building Building (h)Cost of real estate purchased as a plant site (land $200,000 and building $50,000) Land (① Commission fee paid to real estate agency Land () Installation of fences around property Land Improvements (k)Cost of razing and removing building Land (0 Proceeds from salvage of demolished building (Land) (m)Cost of parking lots and driveways Land Improvements (n) Cost of trees and shrubbery (permanent) Land Chapter LO 2 Identify the costs to include in initial valuation 10-10 of property,plant,and equipment
Chapter 10-10 E10-1 (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. Determine how the following should be classified: Acquisition and Valuation of PP&E (g) Architect’s fee on building (h) Cost of real estate purchased as a plant site (land $200,000 and building $50,000) (i) Commission fee paid to real estate agency (j) Installation of fences around property (k) Cost of razing and removing building (l) Proceeds from salvage of demolished building (m) Cost of parking lots and driveways (n) Cost of trees and shrubbery (permanent)