Suppose a company purchased land and a building for $16,545,663 cash. The appraised value of the building was $12,872,190, and the land was appraised at $7,036,613. What dollar amount of the purchase price will be allocated to the Building account?

Suppose a company purchased land and a building for $16,545,663 cash. The appraised value of the building was $12,872,190, and the land was appraised at $7,036,613. What dollar amount of the purchase price will be allocated to the Building account?

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

What dollar amount of the purchase price will be allocated to the building account on this accounting question?

Suppose a company purchased land and a building for
$16,545,663 cash. The appraised value of the building was
$12,872,190, and the land was appraised at $7,036,613. What
dollar amount of the purchase price will be allocated to the
Building account?

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