Homework Answers
Total appraisal value
= Land 98,000 + Building 87,000 = 185,000
Purchase price allocated to building
= (87,000/185,000) * 195,000 = 91,702.70
Building to be recorded at
= 91,702.70 + Renovation 21,000
= 112,702.70 (
.
I have rounded some numbers. Comment if you face any issues
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