Answer:
173,333.33
Explanation:
Lumpsum + Appraisal = Total Spent
500,000 + 20,000 = 520,000
Land + Building + Equipment = Total Fair Value
100,000 + 200,000 + 300,000 = 600,000
Building Costs:
Fair Value Building / Total Fair Value = % of the building cost to apply to the total spent x Total Spent
200,000 /600,000 = .3333 x 520,000 = 173,3333.33
