Question

Aspen Construction made a basket purchase of three items. Item X was appraised at​ $38,000; item Y was appraised at​ $60,000 and item Z was appraised at​ $65,000. The purchase price was​ $126,000. The amount at which item Y should be recorded​ is:

Answer 1

Answer: $46,380

Explanation:

Given that,

Item X was appraised =​ $38,000

Item Y was appraised =​ $60,000

Item Z was appraised =​ $65,000

Purchase price =​ $126,000

Sum of the value of items appraised = $38,000 + $60,000 + $65,000

                                                             = $163,000

The amount at which item Y should be recorded:

= $\frac{Value\ of\ item\ Y\ appraised}{Sum\ of\ all\ value} \times Purchased\ price$

= $\frac{60,000}{163,000} \times 126,000$

= $46,380