The government can shift or influence supply in a market by providing subsidies (money) to businesses or by taxing them heavily.
1 answer:
You might be interested in
Answer:
Land = $ 61,950
Building = $ 227,150
Equipment = $ 82,600
Explanation:
Given the following fair values
Land = $ 70,800
Building = $259,600
Equipment = $ 94,400
Total cost (based on fair value) = 70,800 + 259,600 + 94,400
= $ 424,800
Cash payment given = $ 371,700
Using the proportion system to allocate the cost,
Cost of land = × 371700
= $ 61,950
Cost of building = × 371700
= $ 227,150
Cost of Equipment = × 371700
= $ 82,600
Therefore, the amounts to be recorded in the books for land, building and equipment are $ 61,950, $ 227,150 and $ 82,600 respectively.