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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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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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