Question

Crane Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $428,400. The estimated fair values of the assets are land $81,600, building $299,200, and equipment $108,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.) Recorded Amount Land $ Building Equipment $

Answer 1

	Recorded Amount
Land	$               71,400.00
Building	$              261,800.00
Equipment	$               95,200.00
Explanation
Asset	Fair Value	Percent of Total	x	Cost	Recorded Amount
		Fair Value
Land	$               81,600.00	16.66667%	x	$ 428,400.00	$               71,400.00
Building	$              299,200.00	61.11111%	x	$ 428,400.00	$              261,800.00
Equipment	$              108,800.00	22.22222%	x	$ 428,400.00	$               95,200.00
	$           489,600.00				$ 428,400.00