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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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