Homework Answers
Answer- The amount would be allocated to building on the basis of relative fair values = $1631251.
Explanation- Amount allocated to building =(Building fair value/Total assets fair value)*Purchased cost of assets
= {$2930000/($1840000+$2930000+$2270000+$3270000)}*$5740000
= ($2930000/$10310000)*5740000
= $1631251
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