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:
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?
Total Appraised Value = $140,000
Value required to bring the items into excellent condition = $15,000
The solution discusses the appraisal vs. the winning bid. It computes the total amounts recorded.