Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5 million, but
Question:
Nordso Ltd. purchased a new warehouse. The warehouse had been listed for sale for $5 million, but Nordso was able to acquire it for $4,800,000. The bank, which was providing Nordso with the financing for the purchase, required that an appraisal be completed of the property. The appraisal report came back with the following estimated market values: land $1,518,900, building $2,714,100, and land improvements $747,000.
Required
Allocate the purchase price to the land, building, and land improvements. Also explain why this allocation process is necessary. Round the percentage allocation to one decimal place.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Amount paid for land building and land improvements and amount to be allocated to ...View the full answer
Answered By
Tobias sifuna
I am an individual who possesses a unique set of skills and qualities that make me well-suited for content and academic writing. I have a strong writing ability, allowing me to communicate ideas and arguments in a clear, concise, and effective manner. My writing is backed by extensive research skills, enabling me to gather information from credible sources to support my arguments. I also have critical thinking skills, which allow me to analyze information, draw informed conclusions, and present my arguments in a logical and convincing manner. Additionally, I have an eye for detail and the ability to carefully proofread my work, ensuring that it is free of errors and that all sources are properly cited. Time management skills are another key strength that allow me to meet deadlines and prioritize tasks effectively. Communication skills, including the ability to collaborate with others, including editors, peer reviewers, and subject matter experts, are also important qualities that I have. I am also adaptable, capable of writing on a variety of topics and adjusting my writing style and tone to meet the needs of different audiences and projects. Lastly, I am driven by a passion for writing, which continually drives me to improve my skills and produce high-quality work.
1+ Reviews
10+ Question Solved
Related Book For 
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Question Posted:
