O ezto.mheducat tpx ACCOUNTING o Question 6 (of 10) A company purchases property

Question

O ezto.mheducat tpx ACCOUNTING o Question 6 (of 10) A company purchases property that includes land, buildings and equipment for $4 6 million. The company pays $184,000 in legal fees, $224,000 in commissions, and $101,000 in appraisal fees. The land is estimated at 23%, te buildings are at 38%, and the equipment at 39% of the property value Required a. Determine the total acquisition cost of this basket purchase (Enter your answer in whole dollars and not in millions.) b. Allocate the total acquisition cost to the individual assets acquired (Enter your answers in whole dollars and not in millions.) Land Buildings Equipment Esc F1 F2 F3 F4F5 F6 F7 F8 F9

Explanation / Answer

a. Acquisition cost = $4600000 + $184000 + $224000 + $101000 = $5109000

b.

c.

Land ($5109000 x 23%) 1175070 Buildings ($5109000 x 38%) 1941420 Equipment ($5109000 x 39%) 1992510

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