Samtech Manufacturing purchased land and building for $5million. In addition to the purchase price, Samtech made thefollowing expenditures in connection with the purchase of the landand building: Title insurance $ 24,000 Legal fees for drawing thecontract 9,000 Pro-rated property taxes for the period afteracquisition 44,000 State transfer fees 4,800 An independentappraisal estimated the fair values of the land and building, ifpurchased separately, at $4.2 and $1.8 million, respectively.Shortly after acquisition, Samtech spent $90,000 to construct aparking lot and $48,000 for landscaping. Required:
1. Determine the initial valuation of each asset Samtechacquired in these transactions. (Enter your answers in wholedollars.)
Assets Initial Valuation Land Building Landimprovements
2. Determine the initial valuation of each asset, assuming thatimmediately after acquisition, Samtech demolished the building.Demolition costs were $330,000 and the salvaged materials were soldfor $5,000. In addition, Samtech spent $87,000 clearing and gradingthe land in preparation for the construction of a new building.(Enter your answers in whole dollars.)
Assets Initial Valuation Land Building Landimprovements
Samtech Manufacturing purchased land and building for $5million. In addition to the purchase price, Samtech made thefollowing expenditures in connection with the purchase of the landand building: Title insurance $ 24,000 Legal fees for drawing thecontract 9,000 Pro-rated property taxes for the period afteracquisition 44,000 State transfer fees 4,800 An independentappraisal estimated the fair values of the land and building, ifpurchased separately, at $4.2 and $1.8 million, respectively.Shortly after acquisition, Samtech spent $90,000 to construct aparking lot and $48,000 for landscaping. Required:
1. Determine the initial valuation of each asset Samtechacquired in these transactions. (Enter your answers in wholedollars.)
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2. Determine the initial valuation of each asset, assuming thatimmediately after acquisition, Samtech demolished the building.Demolition costs were $330,000 and the salvaged materials were soldfor $5,000. In addition, Samtech spent $87,000 clearing and gradingthe land in preparation for the construction of a new building.(Enter your answers in whole dollars.)
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Related questions
| Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: |
| Title insurance | $ | 25,000 | |
| Legal fees for drawing the contract | 9,500 | ||
| Pro-rated property taxes for the period after acquisition | 45,000 | ||
| State transfer fees | 4,900 | ||
| 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 $91,000 to construct a parking lot and $49,000 for landscaping. |
| Required: |
| 1. | Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)
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