Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included the land, a building, and factory machinery. Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased: Property Assessed Value Land $126,000 Building 456,000 Machinery 318,000 Total $900,000 Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamarack Company’s records. Do not round until your final answers. Round answers to the nearest dollar. Asset Allocation ofPurchase Price Land Answer Building Answer Mark 0.00 out of 1.00 Machinery Answer Total Answer
Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included the land, a building, and factory machinery. Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased: Property Assessed Value Land $126,000 Building 456,000 Machinery 318,000 Total $900,000 Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamarack Company’s records. Do not round until your final answers. Round answers to the nearest dollar. Asset Allocation ofPurchase Price Land Answer Building Answer Mark 0.00 out of 1.00 Machinery Answer Total Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allocation of Package Purchase Price
Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included the land, a building, and factory machinery. Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased:
Property |
Assessed Value |
|---|---|
| Land | $126,000 |
| Building | 456,000 |
| Machinery | 318,000 |
| Total | $900,000 |
Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamarack Company’s records.
Do not round until your final answers. Round answers to the nearest dollar.
Asset |
Allocation of Purchase Price |
|---|---|
| Land | Answer
|
| Building | Answer
Mark 0.00 out of 1.00
|
| Machinery | Answer
|
| Total | Answer
|
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