Crawford Corporation purchased land, a building, and equipment from Shelby Inc. for a total cash payment of $600,000. The estimated fair values of the assets are as follows: land $150,000, building $375,000, and equipment $125,000. At what amounts should each of the three assets be recorded?

Crawford Corporation purchased land, a building, and equipment from Shelby Inc. for a total cash payment of $600,000. The estimated fair values of the assets are as follows: land $150,000, building $375,000, and equipment $125,000. At what amounts should each of the three assets be recorded?

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

At what amount should each of the three assets be recorded?

Crawford Corporation purchased land, a building, and
equipment from Shelby Inc. for a total cash payment of
$600,000. The estimated fair values of the assets are as
follows: land $150,000, building $375,000, and
equipment $125,000.
At what amounts should each of the three assets be
recorded?

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