Answer:
the correct answer is $3,500.
Explanation:
According to the scenario, the given data are as follows:
Total purchase = $14,000
Appraised Store fixtures = $6,000
Appraised display cases = $9,000
Appraised Commercial safe = $5,000
So, we can calculate the cost that should be recorded for commercial safe by using following formula:
Cost of commercial safe = Total purchase cost × Percentage allocate for safe
Where, Percentage allocate for safe = Appraised Commercial safe value ÷ Total appraised value
= $5,000 ÷ ( $6,000 + $9,000 + $5,000)
= $5,000 ÷ $20,000
= 25%
So, by putting the value, we get
Cost of commercial safe = $14,000 ÷ 25%
= $3,500.
Hence, the cost that should be recorded for commercial safe is $3,500.
