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20 December, 02:42

Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the trailer at $60,000 and $40,000, respectively. At what amount should Radner record the truck?

a. $60,000

b. $54,000

c. $36,000

d. $0

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  1. 20 December, 03:01
    0
    Truck $54,000

    Explanation:

    Basket purchase price of assets is always pro rated in ratio of their fair values

    =90,000 * (60,000/100,000

    =54,000

    Truck=$54,000

    Trailer=90,000-54,000=$36,000
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