Question

Campus TEXAS A&M Jacob Jarvis eCampus ePortfolios Community Content Collection O ... Graded Homework Assignments HW Assignment 8 (Chapter 9) Business Course Return to course # My Subscriptions Jacob Jarvii Allocation of Package Purchase Price Tamarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included the land, a building, and factory machinery, Tamarack also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased: Property Land Building Machinery Assessed Value $126.000 456,000 318.000 $900,000 Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamarack Company's records. Do not round until your final answers. Round answers to the nearest dollar. Allocation of Purchase Price Asset land Building Machinery Total

Answer 1

	Allocation of Purchase price
Land	140840	=1006000*126000/900000
Building	509707	=1006000*456000/900000
Machinery	355453	=1006000*318000/900000
Total	1006000