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Finley Company is looking for a new office location and sees a building with a fair value of $440,000. 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 $84,000. Finley offers to buy both the building and the equipment for $490,000, and the offer is accepted. Determine the amounts Finley should allocate to the separate accounts for building and equipment. Note: Do not round intermediate calculations. Building Equipment Total $ 0

Finley Company is looking for a new office location and sees a building with a fair value of $440,000. 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 $84,000. Finley offers to buy both the building and the equipment for $490,000, and the offer is accepted. Determine the amounts Finley should allocate to the separate accounts for building and equipment. Note: Do not round intermediate calculations. Building Equipment Total $ 0

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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Finley Company is looking for a new office location and sees a building with a fair value of $440,000. 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 $84,000. Finley offers to buy both the building and the equipment for $490,000, and the offer is accepted. Determine the amounts Finley should allocate to the separate accounts for building and equipment. Note: Do not round intermediate calculations. Building Equipment Total $ 0 Chec
Transcribed Image Text:Finley Company is looking for a new office location and sees a building with a fair value of $440,000. 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 $84,000. Finley offers to buy both the building and the equipment for $490,000, and the offer is accepted. Determine the amounts Finley should allocate to the separate accounts for building and equipment. Note: Do not round intermediate calculations. Building Equipment Total $ 0 Chec
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