Asset Acquisition Logan Industries purchased the

following asset
Asset Acquisition Logan Industries purchased the following assets and constructed a building
as well. All this was done during the current year.Assets 1 and 2These assets were purchased
as a lump sum for $104,000 cash. The following information was gathered.Asset 3This machine
was acquired by making a $10,000 down payment and issuing a $30,000, 2-year, zero-interest
bearing note. The note is to be paid off in two $15,000 installments made at the end of the first
and second years. It was estimated that the asset could have been purchased outright for
$35,900.Asset 4This machinery was acquired by trading in used machinery. (The exchange
lacks commercial substance.) Facts concerning the trade-in are as follows.Cost of machinery
traded $100,000Accumulated depreciation to date of sale 36,000Fair value of machinery traded
80,000Cash received 10,000Fair value of machinery acquired 70,000Asset 5Office equipment
was acquired by issuing 100 shares of $8 par value common stock. The stock had a market
value of $11 per share. Construction of Building A building was constructed on land purchased
last year at a cost of $180,000. Construction began on February 1 and was completed on
November 1. The payments to the contractor were as follows.Date Payment2/1 $120,0006/1
360,0009/1 480,00011/1 100,000To finance construction of the building, a $600,000, 12%
construction loan was taken out on February1. The loan was repaid on November 1. The firm
had $200,000 of other outstanding debt during the year at a borrowing rate of 8%.Record the
acquisition of each of theseassets.View Solution:
Asset Acquisition Logan Industries purchased the following asset
SOLUTION-- http://accountinginn.online/downloads/asset-acquisition-logan-industries-
purchased-the-following-asset/

For Solutions Visit accountinginn.online

Powered by TCPDF (www.tcpdf.org)