ABC Company made a lump sum purchase of land, buildings, and equipment. The following were the appraised values of each element: PP&E Element Amount Land Building $10,000 $20,000 Equipment $30,000 ABC signed a 2-year, 3%, note in the amount of $62,000 for the lump sum purchase. What value should be allocated to the following? 1. Land 2. Building 3. Equipment

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
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ABC Company made a lump sum purchase of land,
buildings, and equipment. The following were the
appraised values of each element:
PP&E Element Amount
Land
Building
$10,000
$20,000
Equipment
$30,000
ABC signed a 2-year, 3%, note in the amount of
$62,000 for the lump sum purchase.
What value should be allocated to the following?
1. Land
2. Building
3. Equipment
Transcribed Image Text:ABC Company made a lump sum purchase of land, buildings, and equipment. The following were the appraised values of each element: PP&E Element Amount Land Building $10,000 $20,000 Equipment $30,000 ABC signed a 2-year, 3%, note in the amount of $62,000 for the lump sum purchase. What value should be allocated to the following? 1. Land 2. Building 3. Equipment
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