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Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000, and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to two decimal places: i.e. 0.1589 = 16%.)

Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000, and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to two decimal places: i.e. 0.1589 = 16%.)

FINANCIAL ACCOUNTING
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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Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000, and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to two decimal places: i.e. 0.1589 = 16%.) Multiple Choice $98,734 O $160,000 $121,500 $210,667
Transcribed Image Text:Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000, and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to two decimal places: i.e. 0.1589 = 16%.) Multiple Choice $98,734 O $160,000 $121,500 $210,667
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