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# Reds Company: Compute the total amount recorded for the 1) Equipment 2) furniture 3) machines 4) tools

On 11/3/05, Reds Co was the winning bidder at the local auction. The winning bid was \$115,000 for a collection of stuff to be used in the business. The following values were obtained on this same date from an independent appraiser for the items won:
Equipment \$29,000
Furniture \$30,000
Machines \$46,000
Tools \$35,000

The appraised values given by the independent appraiser assumes that each item is in excellent working condition. Reds Co pays an additional \$9,000 for the equipment and \$6,000 for the machines to bring each item to an excellent working condition. The furniture need to be assembled, so Reds Co spends another \$3000 for assembly.

Compute the total amount recorded for the 1) Equipment 2) furniture 3) machines 4) tools

CLUE must match: Combined amount recorded for the machines and tools are \$17,000 MORE than the combined amounts recorded for the equipment and furniture.

I have so far: Total Appraised Value = \$140,000
Equip = 29,000 /140,000 * 115000 + 9000=32821.43
Furniture = 30,000/140,000 * 115000 + 3000 = 27642.86
Machines = 46,000/140,000 * 115000 + 6000 = 43785.71
Tools = 35,000/140,000 * 115000= 28750.00

(32821.43 + 27642.86) - (43785.71 + 28750.00) = 12071.42--Does not match clue

Can you help me figure out what is wrong?

#### Solution Preview

Total Appraised Value = \$140,000
Value required to bring the items into excellent condition = \$15,000
The ...

#### Solution Summary

The solution discusses the appraisal vs. the winning bid. It computes the total amounts recorded.

\$2.19