Answer
<h3>
The total purchase price allocated to land, building, and machinery accounts is $140,840, $509,707 and $355,453 respectively.</h3>
<h3>
Explanation</h3>
<h3><em>Calculation of Total purchase price</em></h3>
- Total purchase price = purchase price + legal fee
= 1.000.000 + 6.000
= 1.006.000
Allocation of the total purchase price to the land, building, and machinery accounts in Tamarack Company’s record:
- Land = Total purchase price * (Assesed Value of Land / Total Property Assessed Value)
= 1.006.000 * (126.000 / 900.000)
= 140.840
- Building = Total Purchase Price * (Assesed Value of Machinery / Total Property Assessed Value)
Building = 1.006.000 * (318.000 / 900.000) = 355.453,3
<h3>
Thus, the total purchase price allocated to land, building, and machinery accounts is $140,840, $509,707 and $355,453 respectively.</h3>
Answer:
The Journal entry is as follows:
Depletion expense - Coal Deposit A/c Dr. $280,000
To Accumulated depletion -Coal Deposit $280,000
(To record the depletion expense for the current year)
Workings:
Depletion per ton = (cost - Salvage) ÷ Total units of production
= ($900,000 - $100,000) ÷ 200,000
= $4 per ton
Depletion expense = Tonnage tons mined current year × Depletion per ton
= 70,000 tons × $4
= $280,000
Answer:
Timeshare properties
Explanation:
Numerous individuals or families own a timeshare property. Each owner is allocated a specified duration of time to stay in the property. Timeshare properties are common in the tourism sector and are located near popular vacation destinations.
The most common forms of timeshare properties are vacation resorts, condominiums, apartments, and campgrounds.
Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
