Question: Assume the same facts as in Case Study Problem 13-69 except you have the following market values as a result of an appraisal: Equipment .

Assume the same facts as in Case Study Problem 13-69 except you have the following market values as a result of an appraisal:

Equipment ………………………. $ 250,000

Building ………………………… 500,000

Land ……………………………. 140,000

Inventory ………………………. 110,000

Total …………………………… $1,000,000

Tom insists that $150,000 of the purchase price should be allocated to inventory and $100,000 should be allocated to land. He refuses to complete the purchase unless the allocation is made as he requests. What action should you take with respect to Tom’s request?

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