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Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values:                 Land                      $480,000                 Buildings              $384,000                 Equipment          $96,000 What cost should be assigned to the land, buildings, and equipment

Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values:                 Land                      $480,000                 Buildings              $384,000                 Equipment          $96,000 What cost should be assigned to the land, buildings, and equipment

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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Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values:

                Land                      $480,000

                Buildings              $384,000

                Equipment          $96,000

What cost should be assigned to the land, buildings, and equipment, respectively?

  1. $480,000, $384,000, and $96,000.
  2. $412,500, $330,000, and $82,500.
  3. $427,500, $342,000, and $85,500.
  4. $285,000, $285,000, and $285,000.
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