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1 Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the follo

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Calculation of initial valuation of each assets
Cost of land & building
Cost of land & building 3000000
title insurance 30000
legal fees 7000
state transfer fees 5400
Total cost 3042400
Assets fair value %of fair value total cost*%of face value
land 3000000 75% 2281800
building 1000000 25% 760600
total 4000000 3042400
Initial valuation of assets
assets total cost*%
Land 2281800
building 760600
Total cost 3042400
land improvements
land 96000
building 54000
Total cost 150000
2) calaculation of initial valuation of each assets after
acquisition
Particulars amount amount
purchase price 3000000
title insurance 30000
legal fees 7000
state transfer fees 5400
demolition costs 390000
less: salvage of material -8000 382000
clearing & grading cost 93000
total costof land 3517400
Land improvement
parking lot 96000
landscaping 54000
total land improvement 150000

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