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Current Attempt in Progress

$6$ Incorrect. The office building and the land are a lump$-$sum purchase. The acquisition cost of both the land and the building is

equal to the cash paid plus the mortgage assumed, $$750,000+$$$250,000=$$$1,000,000.$ Since $60\%$ of the assessed value can

be allocated to the building, $60\%$ of the amount paid $($$$1,000,000\backslash$times $60\%=$$$600,000)$ should be allocated to the building

account.

Cart Co$.$ purchased an office building and the land on which it is located for $$750,000$ cash and an existing $$250,000$ mortgage. For

realty tax purposes, the property is assessed at $$960,000,60\%$ of which is allocated to the building. At what amount should Cart

record the building?

$$576,000$

$$600,000$

$$500,000$

$$960,000$

Attempts: $1$ of $2$ used

Current Attempt in Progress

On September $30,$ year $2,$ fire at Brock Company's only warehouse caused severe damage to its entire inventory. Based on recent

history, Brock has a gross profit of $30\%$ of net sales. The following information is available from Brock's records for the $9$ months

ended September $30,$ year $2$:

A physical inventory disclosed usable damaged goods which Brock estimates can be sold to a jobber for $$50,000.$ Using the gross profit

method, the estimated cost of goods sold for the $9$ months ended September $30,$ year $2,$ should be

$$2,750,000$

$$2,800,000$

$$2,485,000$

$$2,050,000$