Wildwood Resorts pays $680,000 plus$15,500 in closing costs to buy out a competitor. The real estate consists of land appraised at $95,000, a building appraised at $320,000, and boats appraised at $275,000. Compute the cost that should be allocated to the building.

Wildwood Resorts pays $680,000 plus$15,500 in closing costs to buy out a competitor. The real estate consists of land appraised at $95,000, a building appraised at $320,000, and boats appraised at $275,000. Compute the cost that should be allocated to the building.

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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