Current Attempt in Progress Oriole Flight Academy acquired a new site for its training operations . The company was able to find a small unused airport with an updated runway and hangar that could be used to accommodate a flight simulator , small aircraft , and classrooms . The location was ideal as it was close to the city centre with a large population base from which to attract students . Oriole paid $ 6.70 million to acquire the site . Prior to providing financing for the purchase , the bank required that an appraisal be completed of the property . The evaluation appraisal report came back with the following estimated market values : land building $ 2,455,830 , and land improvements $ 440,790 . Oriole management explained , to the bank's satisfaction , that it paid the $ 403,000 premium because of the property's proximity to the city centre and access to a large population base from which to draw students . 53,400,380, ( a1 ) Allocate the $ 6.70 - million purchase price to the land , building , and land improvements .