The following information applies to the questions displayed below Harding Corpo

Question

The following information applies to the questions displayed below Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1710.000 Harding paid $455,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $481000, Building. $1.430,000 and Equipment $949,000 (Round percentages to two decimal places: ie .054-5%) value 17.00 points What value will be recorded for the bullding? O 227500 O 280,000 O 855.000 O 1430,000 O Type here to search

Explanation / Answer

Solution:

Total consideration paid for land, building and equipment = $1,710,000

Appraised value of building = $1,430,000

Consolidated appraised value of land, building and equipment = $481,000 + $1,430,000 + $949,000 = $2,860,000

Building to be recorded at value = $1,710,00*$1,430,000 / $2,860,000 = $855,000

Hence 3rd option is correct.

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