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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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