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    Harbour Inc basket purchase of land, building, equipment: allocate purchase price

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    HARBOUR INC ACQUIRED LAND, BUILDING & EQUIPMENT AT A LUMP-SUM PRICE OF $1,840,000. AN APPRAISAL OF THE ASSETS AT THE TIME OF ACQUISITION DISCLOSED THE FOLLOWING VALUES:
    LAND 500,000
    BUILDING 1,200,000
    EQUIPMENT 400,000

    DETERMINE THE COST TO BE ASSIGNED TO EACH ASSET.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:41 pm ad1c9bdddf
    https://brainmass.com/business/accounting/purchase-land-building-equipment-allocate-purchase-price-70670

    Solution Preview

    HARBOUR INC ACQUIRED LAND, BUILDING & EQUIPMENT AT A LUMP-SUM PRICE OF $1,840,000. AN APPRAISAL OF THE ASSETS AT THE TIME OF ACQUISITION DISCLOSED THE FOLLOWING VALUES:

    LAND 500,000
    BUILDING 1,200,000
    EQUIPMENT 400,000

    DETERMINE THE COST TO BE ASSIGNED TO EACH ASSET.

    Response:

    What is the total appraisal value of the assets? If we add up the appraisal of the land, the building, and the ...

    Solution Summary

    The solution explains how to allocate a basket purchase of assets and shows the calculations.

    $2.19

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