Chico Company paid $580,000 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 – $150,000; Building – $480,000, Land – $120,000. Based on this information, and rounding allocations to two decimal places, the amount of cost that would be allocated to the office furniture is closest to: (Round your intermediate percentages to 2 decimal places: ie 0.054231 = 5.42%.):

Respuesta :

Answer:

$116,000

Explanation:

The computation of the allocated cost of the land is shown below:

= Purchase value of property × office appraised value ÷ Total appraisal value

= $580,000 × $150,000 ÷ $750,000

= $116,000

The total appraisal value would be

= Appraisal value of office furniture + appraisal value of building + appraisal value of land

= $150,000 + $480,000 + $120,000

= $750,000

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