Question: On February 21 20X2 Speed Tune an auto service chain acquired

On February 21, 20X2, Speed-Tune, an auto service chain, acquired an existing building and land for $920,000 from a local gas station that had failed. The tax assessor had placed an assessed valuation of $300,000 on the land and $500,000 on the building as of January 1, 20X2.
Land ...... $300,000
Building ...... 500,000
Total ...... $800,000
How much of the $920,000 purchase price should be attributed to the building? Why?

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  • CreatedFebruary 20, 2015
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