Question

any ls Constructor 8. On April 1, Mooney Corporation purchased for $1,620,000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $600,000 Warehouse $560,000 400,000 Office building 360,000 800,000 680,000 $1,800,000 $1,600,000 What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively? A) Land, $550,000; warehouse, $370,000; office building. $680,000. B) Land, $600,000; warehouse, $400,000; office building, $800,000. C) Land, $556,875; warehouse, $374,625; office building, $688,500. D) Land, S540,000; warehouse, $360,000; office building. $720,000.

Answer 1

Calculate following

	Current assessed value		Allocated cost
Land	600000	600000/1800000*1620000	540000
Warehouse	400000	400000/1800000*1620000	360000
Office building	800000	800000/1800000*1620000	720000
Total	1800000		1620000

So answer is d) Land $540000 warehouse $360000; office building $720000