Question

Heston Inc. purchased land and a building for a combined cost of $97,000 in cash. The estimated fair values of the land and b
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Answer #1

Answer - $58,200

Explanation -

Total fair value = $100,000

Building ratio as per fair value = $60,000/$100,000 = 6/10

So building amount to be debited is $97,000 * (6/10) = $58,200

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