Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be: Building Land Fixtures a. $ 880,000 $ 1,320,000 $ 2,200,000 b. $ 570,000 $ 855,000 $ 1,425,000 c. $ 855,000 $ 570,000 $ 1,425,000 d. None of these answer choices are correct. Option B Option C Option D Option A
Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be: Building Land Fixtures a. $ 880,000 $ 1,320,000 $ 2,200,000 b. $ 570,000 $ 855,000 $ 1,425,000 c. $ 855,000 $ 570,000 $ 1,425,000 d. None of these answer choices are correct. Option B Option C Option D Option A
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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Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be:
Building | Land | Fixtures | |||||||||
a. | $ | 880,000 | $ | 1,320,000 | $ | 2,200,000 | |||||
b. | $ | 570,000 | $ | 855,000 | $ | 1,425,000 | |||||
c. | $ | 855,000 | $ | 570,000 | $ | 1,425,000 | |||||
d. | None of these answer choices are correct. | ||||||||||
Option B
Option C
Option D
Option A
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