Final answer:
The cost to be capitalized in the asset accounts for the New Office Equipment is $63,800, for the Basket Purchase of a Copier, Computer, and Scanner is $30,000, and for the Land and Building is $800,000.
Step-by-step explanation:
In each of these cases, the cost to be capitalized in the asset accounts is the total cost incurred to acquire and prepare the assets for their intended use. Let's break down the costs for each case:
- New Office Equipment:
Total cost to be capitalized: $58,800 + $1,500 + $2,500 + $650 + $350 = $63,800
For the Basket Purchase, each asset's fair market value as a percentage of the total fair market value is calculated:
- The fair market value of Copier: $22,000 / $40,000 = 55%
- The fair market value of Computer: $10,000 / $40,000 = 25%
- The fair market value of Scanner: $8,000 / $40,000 = 20%
The cost to be capitalized for each asset is then calculated by multiplying the basket purchase cost by the respective percentage:
- Cost to be capitalized for Copier: $30,000 * 55% = $16,500
- Cost to be capitalized for Computer: $30,000 * 25% = $7,500
- Cost to be capitalized for Scanner: $30,000 * 20% = $6,000
Total cost to be capitalized for the Basket Purchase: $16,500 + $7,500 + $6,000 = $30,000
For the Land and Building case, the costs to be capitalized include:
- Purchase price of Land: $250,000
- Demolition of building: $18,000
- Grading in preparation for the new building: $22,000
- Construction of new building: $510,000
Total cost to be capitalized for Land and Building: $250,000 + $18,000 + $22,000 + $510,000 = $800,000