Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment of $4,800,000. An independent appraiser estimated fair values of $2,600,000, $1,560,000, and $1,040,000 for the building, land, and furniture, respectively. Compute the costs recorded by Sanders for the building, land, and furniture, respectively.
Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment of $4,800,000. An independent appraiser estimated fair values of $2,600,000, $1,560,000, and $1,040,000 for the building, land, and furniture, respectively. Compute the costs recorded by Sanders for the building, land, and furniture, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment of $4,800,000. An independent appraiser estimated fair values of $2,600,000, $1,560,000, and $1,040,000 for the building, land, and furniture, respectively. Compute the costs recorded by Sanders for the building, land, and furniture, respectively.
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