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QUESTION 11 A company recently spent $350,000 to purchase land, buidling and equipment from a bank. The market values of the

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Answer #1

Allocation of purchase price of the assets with espect to market value of the assets

Land: ($200,000/$400,000)*$350,000 = $175,000

Building: ($150,000/$400,000)*$350,000= $131,250

Equipment: ($50,000/$400,000)*$350,000= $43,750

$350,000

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