Two assets are purchased together, a piece of land and a building. The firm pays $156,000...
Two assets are purchased together, a piece of land and a building. The firm pays $156,000 for the two assets. The piece of land is valued at $103,000 and the building at $72,000. What would be the acquisition price of the land?
Homework Answers
Acquisition price of the land = Amount paid*value of land / (value of land + value of building)
= 156000*103000/(103000+72000)
= $91817
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