Value of asset = Lump sum price*individual fair value/ Total fair value
Building = 8350000*3420000/(3420000+4560000+3420000) = $2505000
Land = 8350000*4560000/(3420000+4560000+3420000) = $3340000
Equipment = 8350000*3420000/(3420000+4560000+3420000) = $2505000
Option c. is correct answer.
5 points Save Answe Cantor Corporation acquired a manufacturing facility on four acres of land for a lump sum price...
1.A company acquired an office building on three acres of land for a lump-sum price of $2,900,000. The building was completely equipped. According to independent appraisals, the fair values were $1,840,000, $1,380,000, and $1,380,000 for the building, land, and equipment, respectively. At what amount would the company record the building? $1,860,000. None of these answer choices are correct. $1,160,000. $1,320,000. 2. A company purchased new equipment for $61,000. The company paid cash for the equipment. Other costs associated with the...
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,400,000. According to independent appraisals, the fair values were $675,000 (building A) and $300,000 (building B) for the buildings and $525,000 for the land. Required: Determine the initial valuation of the buildings and the land. Asset Initial Valuation Land Building A Building B Total
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,300,000. According to independent appraisals, the fair values were $630,000 (building A) and $280,000 (building B) for the buildings and $490,000 for the land. Required: Determine the initial valuation of the buildings and the land. Initial Asset Valuation Building A Building B Land Total
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,600,000. According to independent appraisals, the fair values were $765,000 (building A) and $425,000 (building B) for the buildings and $510,000 for the land. Required:Determine the initial valuation of the buildings and the land.
Plnewood Company purchased two bulldings on four acres of land. The lump-sum purchase price was $2,400,000. According to Independent appralsals, the falr values were $1,125,000 (bullding A) and $500,000 (bullding B) for the bulldings and $875,000 for the land. Required Determine the initial valuation of the bulildings and the land. Initial Valuation Asset Land Building A Building E Total
Question Help Land, a building and equipment are acquired for a lump sum of $800,000 The market values of the land building and equipment are $500,000, 5900,000 and $200,000, respectively. What is the cost assigned to the equipment? (Do not round any intermediary calculations, and round your final answer to the nearest dollar) O A $800,000 O B. $100,000 OC. 50 OD. $200,000
6. The cost of constructing a new parking lot at the company's office building would be recorded as: a. Building b. Equipment c. Land d. Land Improvement 7. Braxwell Corporation acquired the following assets associated with a manufacturing facility for a lump-sum price of $9,000,000. According to independent appraisals, the fair values were $4,000,000, $2,000,000, $3,000,000, and $1,000,000 for the building, patent, land, and equipment, respectively. The initial value of the patent would be:
5 points Save Ans A company purchased land, a building, and equipment for one price of $1,750,000. The estimated fair values of the land building and equipment are 5218.750.51531250 and $437 500 respectively. At what amount would the company record the land? $218.750 $1,750,000 $175,000 $185.000
Exercise 10-3 Acquisition costs; lump-sum acquisition (LO10-1, 10-2) Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $30,000 7.000 50.000 5,400 - An independent appraisal estimated the fair values of the land and building. If purchased separately, at $3 and...
Check Exercise 10-3 Acquisition costs; lump-sum acquisition (LO10-1, 10-2) Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Pro-rated property taxes.for the period after acquisition State transfer tees $21,000 7.500 41,000 4,500 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.9 and $11...