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alexdok [17]
3 years ago
6

Pharoah Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600. The estimated fair

values of the assets are land $74,400, building $272,800, and equipment $99,200. At what amounts should each of the three assets be recorded?
Business
1 answer:
BabaBlast [244]3 years ago
3 0

Answer:

Land = 65100.001

Building = 238699.999

Equipment = 86799.99

Explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = $74,400+$272,800+$99,200

Total Asset Fair Value = $446400

Recorder Amount

Land = $74,400/$446400 * $390,600

Land = 65100.001

Building = $272,800/$446400 * $390,600

Building = 238699.999

Equipment = $99,200/$446400 * $390,600

Equipment = 86799.99

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