Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According

Question:

Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land.

Required:

Determine the initial valuation of the buildings and the land.