Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase. Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase. That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices. The separate value of the asset indicates the relative market value of the asset. To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

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Answer 1

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Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

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Answer 2

Question

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

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Answer 3

Question

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

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Answer 4

Question

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

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Answer 5

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

Answer 6

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

Answer 7

Chapter 9, Problem 9.2SE

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

To journalize: the lump-sum purchase of the three assets: land, building, and equipment.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author describes the lump-sum purchase of land, building, and equipment.

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