In 2009 Shanks/Tumbler Industrial Expansion Enterprises (STIEE) was acquired as a transport company for nikel mines in Arizona, for $1.4 million cash by John Shanks and Glen Tumbler. This funding acquired trucks/forklifts that were almost new but leftover from the previous transport company that declared bankruptcy, land that is used to store the transport vehicles, a 40,000 square foot warehouse where repairs can be done to the vehicles and where the company offices are located. Goodwill was also paid toward to the selling company as STIEE felt that the entity's potential was far beyond the expectations and sale price noted by the selling company.
Please match the following assets to their best cost allocation method?
Forklifts and heavy equipment Read Answer Items for Question 9
Land on which the vehicles are stored Read Answer Items for Question 9
GoodwillRead Answer Items for Question 9
Warehouse/office location Read Answer Items for Question 9
The solution provides the correct answer for the question that asks, Please match the following assets to their best cost allocation method. The assets given are: Forklifts and heavy equipment, Land on which the vehicles are stored, Goodwill, Warehouse/office location