An investment had a nominal return of 9.7 percent last year. The inflation rate was 2.7 percent. What was the real return on the
1 answer:
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Answer:
cost of land record = $206550
Explanation:
given data
market value of the land = $320000
market value of the building = $470000
acquired both land and building = $510000
to find out
amount should the corporation record the cost of land
solution
first we find market value to total assets that is
market value to total assets = market value of the land + market value of the building ......................1
put here value
market value to total assets = $320000 + $470000
market value to total assets = $790000
and
share of land in the total market that is
share of land in the total market = .......................2
put here value
share of land in the total market =
share of land in the total market = 40.50 %
and
cost of land record = share of land in the total market × acquired both land and building .......................3
put here value
cost of land record = $510000 × 40.50%
cost of land record = $206550