Ask Question
6 June, 16:56

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $57,500; the land at $48,600, and the parking lot at $18,900. Land should be recorded in the accounting records with an allocated cost of:

+1
Answers (1)
  1. 6 June, 19:23
    0
    =$38,800

    Explanation:

    Assets are recorded in accounting books at their purchase price plus other related acquisition costs. For this company, the total amount incurred is $100,000. The three assets will be recorded proportionately to their appraised value.

    The total appraised value is $57,500 + _$48,600 + $18,900

    =$125,000

    The appraised value for land is $48,600,

    the land will be recorded at

    =48,600 / 125,000 x 100,000

    =$38,800
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers