AFM Holdings Co. purchased 15 acres of land with an office building and warehouse on it for $2,000,000. The assets were appraised at: land $1,000,000, building $600,000, and warehouse $900,000. The assets were carried on the seller's books at: land $800,000, building $500,000, and warehouse $700,000. At what cost should the purchasing company record each of the assets?

Land,                        Building,                    Warehouse:

a. $1,000,000,         $600,000,                   $900,000

b. $800,000,            $480,000,                   $720,000

c. $800,000,             $500,000,                   $700,000

d. $1,000,000,          $500,000,                   $500,000

Answer rating: 100% (QA)

Required solution is given below Correct answer 800000 500000 700000 Deta... View the full answer