1. A company pays $4,500,000 for a building, land, and equipment. Based on an appraisal, the land was appraised at $1,632,000; the building $3,422,000; and the equipment at $746,000. How much should the company allocate to the land, building, and equipment?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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A company pays $4,500,000 for a building, land, and equipment. Based on an appraisal, the
land was appraised at $1,632,000; the building $3,422,000; and the equipment at $746,000.
How much should the company allocate to the land, building, and equipment?
Transcribed Image Text:1. A company pays $4,500,000 for a building, land, and equipment. Based on an appraisal, the land was appraised at $1,632,000; the building $3,422,000; and the equipment at $746,000. How much should the company allocate to the land, building, and equipment?
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