Assume that a building and the land it is situated on, along with a dump truck,...

 

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Assume that a building and the land it is situated on, along with a dump truck, are purchased at an auction. The three assets were purchased together for a price of $150,000. The fair market value of the assets are shown in the table below. Determine each asset's percentage of fair market value total. Then, apply that percentage to the group purchase cost to determine the allocated cost to be recorded for each asset. Fair market value Percent of total Allocated cost Land $54,375 Building 130,500 Truck 32,625 Total 100% $150,000 Assume that a building and the land it is situated on, along with a dump truck, are purchased at an auction. The three assets were purchased together for a price of $150,000. The fair market value of the assets are shown in the table below. Determine each asset's percentage of fair market value total. Then, apply that percentage to the group purchase cost to determine the allocated cost to be recorded for each asset. Fair market value Percent of total Allocated cost Land $54,375 Building 130,500 Truck 32,625 Total 100% $150,000

Answer rating: 100% (QA)

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