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Stella [2.4K]
3 years ago
9

Red Rock Bakery purchases land, building, and equipment for a single purchase price of $260,000. However, the estimated fair val

ues of the land, building, and equipment are $126,000, $198,000, and $36,000, respectively, for a total estimated fair value of $360,000. Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
Business
1 answer:
telo118 [61]3 years ago
4 0

Answer:

Land ($91,000), building ($143,000) and equipment ($26,000)

Explanation:

We can allocate the fair values as follows:

Particulars          Fair value          Allocated amount

                               (a)                 (b) = (a)/Total*$260,000

Land                    $126,000                 $91,000

Building                 198,000                 143,000

Equipment              36,000                  26,000

Total                   $360,000              $260,000

The amount that the company would record for the individual asset is as provided above.

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8 0
3 years ago
Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the coming year using the high-low method
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Answer:

Variable Cost per hour is $4.86

Explanation:

given data

Highest Cost = $27,049

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solution

we get here Variable Cost per hour that is express as

Variable Cost per hour = (Highest Cost - Lowest Cost) ÷ (Highest Cost Driver - Lowest Cost Driver)   ......................1

put here value and we get

Variable Cost per hour = \frac{27049-19772}{4168-2672}    

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Answer:

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8 0
3 years ago
Insurance is an example of a(n)_______
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Answer:

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Explanation:

I hope this was helpful, have a blessed day.

8 0
3 years ago
Read 2 more answers
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