A company purchases a property consisting of both land and a building for a total cost of $720,000. The land has an appraised value of $180,000, and the building has an appraised value of $420,000. What portion of the purchase price should be allocated to the building?
A company purchases a property consisting of both land and a building for a total cost of $720,000. The land has an appraised value of $180,000, and the building has an appraised value of $420,000. What portion of the purchase price should be allocated to the building?
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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Transcribed Image Text:A company purchases a property consisting of both land and a
building for a total cost of $720,000. The land has an appraised value
of $180,000, and the building has an appraised value of $420,000.
What portion of the purchase price should be allocated to the
building?
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