**Question:**Kramer Corporation made a basket purchase of three items. Item X was appraised at $40,000; Item Y was appraised at $56,000; and Item Z was appraised at $64,000. The purchase price was $129,000. The amount at which Item X should be recorded is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)**Options:**A. $49,612. B. $40,000. C. $39,000. D. $32,250.---Explanation:To find the amount at which Item X should be recorded, you need to distribute the total purchase price of $129,000 based on the proportion of Item X's appraised value relative to the total appraised values of all items.1. Calculate the total appraised value: - Total appraised value = $40,000 (Item X) + $56,000 (Item Y) + $64,000 (Item Z) = $160,000.2. Determine the proportion of Item X's appraised value: - Proportion of Item X = $40,000 / $160,000.3. Allocate the purchase price to Item X: - Amount for Item X = $129,000 * (Proportion of Item X).Round intermediary calculations to the nearest cent and the final answer to the nearest dollar to find the closest value among the options provided.

Total appraisal value = appraisal value of X + appraisal value of Y + appraisal value of Z =…

Answered: **Question:** Kramer Corporation made…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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