Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places. A. $171,000 B. $132,000 C. $316,667 D. $114,000
Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places. A. $171,000 B. $132,000 C. $316,667 D. $114,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
Related questions
Question
Inc paid $950,000 for a basket purchase that included office furniture, a building, and land. An appraiser provided the following estimates of the appraised values of the assets if they had been purchased separately : office furniture, $190,000. Building: $740,000. Land: $132,000. Based on this information, what is the cost that should be allocated to the land? Round to 2 decimal places.
A. $171,000
B. $132,000
C. $316,667
D. $114,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning