Addresses the gonzo co, Gonzo Co. owns a building in

Addresses the gonzo co

Reference no: EM1343818

Gonzo Co. owns a building in Georgia. The building's historical cost is $970,000, and $440,000 of accumulated depreciation has been recorded to date. During 2011, Gonzo incurred the following expenses related to the building.

Repainted the building $48,000
Major improvement to the plumbing 109,000
Replaced carpet in the plant's accounting offices 47,600
Added a 7,000 square foot lobby 234,600
Repaired a broken water main 155,800

1.) Which of the costs incurred by Gonzo Co. should be capitalized to the building account?

2.) What is the subsequent carrying amount of the building?

Reference no: EM1343818

Questions Cloud

Determine stocks return for the missing year : You find a certain stock that had returns of 16 percent, -9%, 23%, and 24% for four of the last five years. The average return of the stock over this period was 14.40 percent.

Business acquisition-kraft-cadbury : Kraft is a diverse company that, in 2009, made an acquisition to the confectionery group, Cadbury. However, this acquisition appears to have failed to create any value.

Find what financial statement adjustments will lucent have : Find what financial statement adjustments will Lucent have to make to correct the revenue recognition problems announced in late 2000?

Find the amount invested : You have $22,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11.00% and Stock Y with an expected return of 13%.

Addresses the gonzo co : Gonzo Co. owns a building in Georgia. The building's historical cost is $970,000, and $440,000 of accumulated depreciation has been recorded to date. During 2011, Gonzo incurred the following expenses related to the building

Evaluate the lower cash from operations : what are the reasons for a firm having lower cash from operations than working capital from operations and what are the possible interpretations of these reasons?

Users and it organizations arm against phishing attacks : How users and IT organizations must arm themselves against these attacks?

Determining if it project supports goals and objectives : An organization had a history of making regular investments in IT acquisition projects. It consistently spent more on IT acquisitions than its competitors but seemed to gain no advantage from doing so.

Accounting decision to select lifo : Explain how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inventory valuation?

User Account

All Pages