Answer:
the amount that the company would record the building is $ 4,235,350
Explanation:
Because the Assets (Equipment, Building and Land) purchased will be depreciated diferently, there is need to allocate the purchase cost to the respective assets.
<u>Fair Values are used to Apportion cost of Assets as follows :</u>
<em>Equipment</em>
1,000,000/ 10,000,000 × $6,050,500 = $605,050
<em>Buildings</em>
7,000,000/ 10,000,000 × $6,050,500 = $ 4,235,350
<em>Land</em>
2,000,000/ 10,000,000 × $6,050,500 = $1,210,100
