Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they hadbeen purchased separately: Office furniture, $160,000; Building, $500,000; and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture?Note: Round intermediate percentage values to a whole percentage.Multiple Choice$235,562$66,500$160,000$120,000

When purchasing is done in groups than cost are allocated based on the weight in the actual fair…

Answered: purchased separately: Office furniture,…

purchased separately: Office furniture, $160,000; Round intermediate percentage values to a who Multiple Choice O $235,562 O $66,500 O $160,000 O $120,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had
been purchased separately: Office furniture, $160,000; Building, $500,000; and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture?
Note: Round intermediate percentage values to a whole percentage.
Multiple Choice
$235,562
$66,500
$160,000
$120,000

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