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14 March, 10:05

Anderson Corporation has purchased a group of assets for $16,600.

The assets and their relative market values are listed below.

Land 6,500

Equipment 2,400

Building 3,400

Which of the following amounts would be debited to the Land? account? (Round any intermediate calculations to two decimal? places, and your final answer to the nearest? dollar.) A.$ 3 comma 320$3,320B.$ 4 comma 100$4,100C.$ 8 comma 798$8,798

D. $ 4 comma 648

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  1. 14 March, 10:18
    0
    C.$ 8 comma 798$8,798

    Explanation:

    Given,

    Purchase value = $16,600

    Considering the relative values

    Relative value of land = $6,500

    Total relative value = 6500 + 2400 + 3400

    = $12,300

    Using the relative value to allocate the purchased value of the land

    Purchased cost of land = (6500/12300) * 16,600

    = 0.53 * 16,600

    = $8,798

    The amount that would be debited to the Land is $8,798 Option C
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