Basket Purchase: Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value. To Calculate: The cost to be recorded for commercial safe

Question

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Answer 1

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

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Answer 2

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

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Answer 3

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

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Answer 4

Question

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

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Answer 5

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 6

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 7

Chapter 6, Problem 6.1ME

To determine

Concept Introduction:

Basket Purchase:

Basket purchase is purchase of several items in a bunch paying the lump sum amount for all the items without knowing the purchase cost of each item individually. The recording value of each asset is calculated using the ratio of their fair value.

To Calculate:

The cost to be recorded for commercial safe

Answer 8

Expert Solution & Answer

Answer to Problem 6.1ME

The cost to be recorded for commercial safe is $4,500

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The cost to be recorded for commercial safe is calculated as follows:

Item	Appraised Values	Ratio	Lump-Sum Price	Value
	A	B =A/30000	C	*BC**
Store Fixtures	$ 9,000	0.30	$ 18,000	$ 5,400
Display Cases	$ 13,500	0.45	$ 18,000	$ 8,100
Commercial Safe	$ 7,500	0.25	$ 18,000	$ 4,500
Total	$ 30,000			$ 18,000

Hence, the cost to be recorded for commercial safe is $4,500

Answer 12

Ch. 6 - Prob. 6.1ME Ch. 6 - Prob. 6.2ME Ch. 6 - Mini-Exercise 6.3 LO 3 Depreciation calculation...Ch. 6 - Prob. 6.4ME Ch. 6 - Mini-Exercise 6.5 LO 9 Goodwill Backstreets Co....Ch. 6 - Prob. 6.6ME Ch. 6 - Exercise 6.7 LO 1 Basket purchase allocation...Ch. 6 - Prob. 6.8E Ch. 6 - Prob. 6.9E Ch. 6 - Prob. 6.10E

Answer to Problem 6.1ME

Explanation of Solution

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Chapter 6 Solutions