Question

A company acquired an office building on three acres of land for a lump-sum price of $3,150,000. The building was completely equipped. According to independent appraisals, the fair values were $1,680,000, $2,800,000, and $1,120,000 for the building, land, and equipment, respectively. At what amount would the company record the building

Answer 1

Answer:

$1,680,000

Explanation:

Based on the information given we were told that the fair value of the building was the amount of $1,680,000 which means that the amount that the company would record the building is the fair value amount of $1,680,000.

Therefore the amount that the company would record the building is $1,680,000.