Blue crest Inc. purchased land and a building for $9,000,000. • Appraised value of the building: $6,000,000 • Appraised value of the land: $4,000,000 What dollar amount of the purchase price will be allocated to the Building account?

Blue crest Inc. purchased land and a building for $9,000,000. • Appraised value of the building: $6,000,000 • Appraised value of the land: $4,000,000 What dollar amount of the purchase price will be allocated to the Building account?

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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Question

Can you provide a detailed solution to this financial accounting problem using proper principles?

Blue crest Inc. purchased land and a building for $9,000,000.
•
Appraised value of the building: $6,000,000
•
Appraised value of the land: $4,000,000
What dollar amount of the purchase price will be allocated to the
Building account?

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