On april 1 20x2 the mrc purchased a bankrupt warehouse, Ask an Expert

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On April 1, 20x2, the MRC purchased a bankrupt warehouse which has been used for a short period of time as a gymnasium. The total cost and allocation was follows $410,000 land 20%, Building 60%, Heating /Air conditioner equipment 14%, Old fitness equipment 5% Terms of purchase: A cash down payment is paid on April 1, 20x2 $32,800 A 30-year, 5% mortgage was arranged for the remaining amount $377,200 Depreciation was determined as follows Building: 30 year estimated life, residual value, 10% of original cost Heating and A/C equipment: 15 year estimated life; no residual vale (Heating and A/C equipment: Depreciation to begin April 1 20x2) Old Fitness equipment: to be sold and replaced (not being depreciated)'

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Accounting Basics, Accounting

Category:- Accounting Basics
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