Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $300,000. However, the estimated fair values of the land, building, and equipment are $100,000, $260,000, and $40,000, respectively, for a total estimated fair value of $400,000. Required: Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value $ 0 Allocation Percentage % % % Amount of Basket Purchase Recorded Amount $ 0
Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $300,000. However, the estimated fair values of the land, building, and equipment are $100,000, $260,000, and $40,000, respectively, for a total estimated fair value of $400,000. Required: Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value $ 0 Allocation Percentage % % % Amount of Basket Purchase Recorded Amount $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $300,000. However, the estimated fair
values of the land, building, and equipment are $100,000, $260,000, and $40,000, respectively, for a total estimated fair value of
$400,000.
Required:
Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment.
Land
Building
Equipment
Total
Estimated Fair Value
$
0
Allocation
Percentage
%
%
%
Amount of Basket
Purchase
Recorded
Amount.
$
0
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