Allocation of Package Purchase Price Joe Comey went into business by purchasing a car lubrication station consisting of land, a building, and equipment. The seller’s original asking price was $240,000. Comey hired an appraiser for $3,000 to appraise the assets. The appraised valuations were: Property Assessed Value Land $43,000 Building 95,000 Equipment 62,000 Total $200,000 After receiving the appraisal, Comey offered $183,000 for the business. The seller refused this offer. Comey then offered $190,000 for the business, which the seller accepted. Using the appraisal values as a guide, allocate the total purchase price of the car lubrication station to the Land, Building, and Equipment accounts. Asset Allocation of Purchase Price Land Answer Building Answer Equipment Answer Total Answer
Allocation of Package Purchase Price Joe Comey went into business by purchasing a car lubrication station consisting of land, a building, and equipment. The seller’s original asking price was $240,000. Comey hired an appraiser for $3,000 to appraise the assets. The appraised valuations were: Property Assessed Value Land $43,000 Building 95,000 Equipment 62,000 Total $200,000 After receiving the appraisal, Comey offered $183,000 for the business. The seller refused this offer. Comey then offered $190,000 for the business, which the seller accepted. Using the appraisal values as a guide, allocate the total purchase price of the car lubrication station to the Land, Building, and Equipment accounts. Asset Allocation of Purchase Price Land Answer Building Answer Equipment Answer Total Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allocation of Package Purchase Price
Joe Comey went into business by purchasing a car lubrication station consisting of land, a building, and equipment. The seller’s original asking price was $240,000. Comey hired an appraiser for $3,000 to appraise the assets. The appraised valuations were:
Property |
Assessed Value |
|---|---|
| Land | $43,000 |
| Building | 95,000 |
| Equipment | 62,000 |
| Total | $200,000 |
After receiving the appraisal, Comey offered $183,000 for the business. The seller refused this offer. Comey then offered $190,000 for the business, which the seller accepted. Using the appraisal values as a guide, allocate the total purchase price of the car lubrication station to the Land, Building, and Equipment accounts.
Asset |
Allocation of Purchase Price |
|---|---|
| Land | Answer |
| Building | Answer |
| Equipment | Answer |
| Total | Answer |
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