Question
In: Accounting
Chico Company paid $950,000 for a basket purchase that included office furniture, a building and land....
Chico Company paid $950,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture $190,000; Building $740,000, Land $132,000. Based on this information, the amount of cost that would be allocated to the office furniture is closest to: (Round your intermediate percentages to 2 decimal places: ie 0.054231 = 5.42%.):
Solutions
Expert Solution
| Particulars | Value | Percentage |
| Office Furniture | $1,90,000 | 17.89% |
| Buildings | $7,40,000 | 69.68% |
| Land | $1,32,000 | 12.43% |
| Total | $10,62,000 | 100.00% |
Amount to be allocated to Office Furniture in Basket Purchase Price = $950,000 * 17.89% = $ 169,955
ekkarill92 answered 3 years agoRelated Solutions
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