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Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. At what amounts should each of the three assets be recorded?(Round final answer to 0 deciaml places, e.g. 5,275.)

Recorder Amount

Land

Building

Equipment

Respuesta :

innthomas00158

Answer:

Recorder Amount: 315000

Land: 52500

Building: 192500

Equipment: 70000

Explanation:

Record the value with the lower of cost or fair value. Since the cost(cash price) is lower. We calculate the proportion of each asset using the fair value figures:

formula: percentage of each asset as a function of fair value multiplied by cash payment.

Total: 60000+220000+80000=360000

land=0.167(that is 60/360) * 315000 = 52500

Building=0.611 * 315000 = 192500

Equipment = 0.22*315000=70000

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