Brief Exercise 7-3 (Algo) Allocate cost in a basket purchase (LO7-1) Finley Company is looking for a new office location and sees a building with a fair value of $460,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $86,000. Finley offers to buy both the building and the equipment for $510,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round intermediate calculations.) Building Equipment Total S 0

Brief Exercise 7-3 (Algo) Allocate cost in a basket purchase (LO7-1) Finley Company is looking for a new office location and sees a building with a fair value of $460,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $86,000. Finley offers to buy both the building and the equipment for $510,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round intermediate calculations.) Building Equipment Total S 0

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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