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Alekssandra [29.7K]
3 years ago
10

Terps Company purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of

the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should the company record for the land, building and machinery
Business
1 answer:
brilliants [131]3 years ago
4 0

Answer:

Land = $22,000

Building = $27,500

Machinery = $60,500

Explanation:

Use the appraised values to apportion the Purchase Price ($110,000) to the asset categories.

Total appraised value = $24,000 + $30,000 + $66,000 = $120,000

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