Question

Check my work Exercise 10-3 (Static) 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: points Title insurance Legal fees for drawing the contract Pro-rated property taxes for the period after acquisition State transfer fees $16,000 5,000 36,000 4,000 eBook An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. Shortly after acquisition, Samtech spent $82,000 to construct a parking lot and $40,000 for landscaping. Hint Print Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $250,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $250,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building. (Enter your answers in whole dollars.) Initial Valuation $ 4,355,000 Assets Land Building Land improvements | $ 122,000

plz solve this Q

Answer 1

1. 3018.750* Intial Valuation Land Building Land improvement [820w 40000] 2006250 * 122000 Explanation Purchase cost of land & Bullding Title insurance Legal fees state transfer feer Total cost of land and building 4000000 1600 sooo 4000 4025000 Note - Pro-rated property taxes for period after acquisition of $3600 are not included in cost of acquisition of land and building but these are expensed over period for which Paid Appraised % of Total Allocation of Value ($ Appraised value lised value Cast & 33 0000 75%. Quitton) 3018 750 * Land Building 00000 251 1006250 Total 4400000 $ 435 Soo v Land Building Land improvement 82000-14000) - 22.000

and improvements 1980 Land Building Initial cost 4025000 Cost of demolishing building 250.000 proceeds from sale of 6000 salvaged materials clearing & grading the land 86000 o Total cost $ 435 500 122000
Thank you

I hope you understand