Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values: Land $480,000 Buildings $384,000 Equipment $96,000 What cost should be assigned to the land, buildings, and equipment
Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values: Land $480,000 Buildings $384,000 Equipment $96,000 What cost should be assigned to the land, buildings, and equipment
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $825,000. At the time of acquisition, Perry paid $30,000 to have the assets appraised. The appraisal disclosed the following values:
Land $480,000
Buildings $384,000
Equipment $96,000
What cost should be assigned to the land, buildings, and equipment, respectively?
- $480,000, $384,000, and $96,000.
- $412,500, $330,000, and $82,500.
- $427,500, $342,000, and $85,500.
- $285,000, $285,000, and $285,000.
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