Basket Purchase: Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value. To Calculate: The cost to be recorded for commercial safe

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

How much was the equity of horizon steel corporation worth of this accounting question?

Please provide answer the following requirements a and b on these financial accounting question

Compute the amount of the work in process inventory on hand at year end of this accounting question

Answer 2

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 6

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 7

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Answer 8

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 12

Ch. 6 - Prob. 6.1ME Ch. 6 - Prob. 6.2ME Ch. 6 - Mini-Exercise 6.3 LO 3 Depreciation calculation...Ch. 6 - Prob. 6.4ME Ch. 6 - Mini-Exercise 6.5 LO 9 Goodwill Backstreets Co....Ch. 6 - Prob. 6.6ME Ch. 6 - Exercise 6.7 LO 1 Basket purchase allocation...Ch. 6 - Prob. 6.8E Ch. 6 - Prob. 6.9E Ch. 6 - Prob. 6.10E

Answer to Problem 6.1ME

Explanation of Solution

Want to see more full solutions like this?

Chapter 6 Solutions