Allocation of Package Purchase Price Tamock Company purchased a plant from one of its suppliers. The $965,000 purchase price included the land, a building, and factory machinery. Tamock also paid $5,000 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 486,000 Machinery 288,000 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 Tamock Company’s records. Asset Allocation of Purchase Price Land Answer Building Answer Machinery Answer Total Answer

FINANCIAL ACCOUNTING
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Allocation of Package Purchase Price

Tamock Company purchased a plant from one of its suppliers. The $965,000 purchase price included the land, a building, and factory machinery. Tamock also paid $5,000 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 486,000
Machinery 288,000
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 Tamock Company’s records.


Asset
Allocation of
Purchase Price
Land Answer
Building Answer
Machinery Answer
Total Answer
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