The Wally Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $250,000. At the time of acquisition, Wally paid $10,000 to have the assets appraised. The appraisal disclosed the following values: Land $ 60,000 Buildings 200,000 Equipment 140,000 What costs should be assigned to the land, buildings, and equipment, respectively? a. $100,000, $100,000, and $100,000 b. $103,333, $103,333, and $103,334 c. $39,000, $130,000, and $91,000 d. $46,500, $155,000, and $108,500
2. The Wally Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $250,000. At the time of acquisition, Wally paid $10,000 to have the assets appraised. The appraisal disclosed the following values:
Land $ 60,000
Buildings 200,000
Equipment 140,000
What costs should be assigned to the land, buildings, and equipment, respectively?
a. $100,000, $100,000, and $100,000
b. $103,333, $103,333, and $103,334
c. $39,000, $130,000, and $91,000
d. $46,500, $155,000, and $108,500
Example:
The Wally Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $300,000. At the time of acquisition, Wally paid $10,000 to have the assets appraised. The appraisal disclosed the following values:
Land $ 60,000
Buildings 200,000
Equipment 140,000
What costs should be assigned to the land, buildings, and equipment, respectively?
a. $100,000, $100,000, and $100,000
b. $103,333, $103,333, and $103,334
c. $45,000, $150,000, and $105,000
d. $46,500, $155,000, and $108,500
Cost assigned to land = 60,000 / (60,000 + 200,000 + 140,000) * (300,000 + 10,000)
= 46,500
Cost assigned to building = 200,000 / (60,000 + 200,000 + 140,000) * (300,000 +
10,000) = 155,000
Cost assigned to equipment = 140,000 / (60,000 + 200,000 + 140,000) * (300,000 +
10,000) = 108,500
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