how to solve？ Riverboat Adventures pays $520,000 plus $18,000 in closing costs to buy out a...

Question

Question

how to solve？

Answer 1

Answer #1

Solution:

Cost allocated to building = Total cost of buy out * Appraised value of building / Total appraised value

= $538,000 * $214,500 / ($82,500 + $214,500 + $253,000)

= $209,820

Hence last option is correct.

Answer 2

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