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Sheridan Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $441,000....

Sheridan Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $441,000. The estimated fair values of the assets are land $84,000, building $308,000, and equipment $112,000. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.)

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Answer #1

Total estimated fair values of assets

= 84,000+308,000+112,000 = 504,000

Land (84,000/504,000)*441,000 73,500
Building (308,000/504,000)*441,000 269,500
Equipment (112,000/504,000)*441,000 97,9999

Please note that I have rounded some numbers as per question.

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