Ask Question
16 June, 02:53

Pharoah Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600. The estimated fair values of the assets are land $74,400, building $272,800, and equipment $99,200. At what amounts should each of the three assets be recorded?

+5
Answers (1)
  1. 16 June, 03:16
    0
    Land = 65100.001

    Building = 238699.999

    Equipment = 86799.99

    Explanation:

    Total Asset Fair Value = Land + Building + Equipment

    Total Asset Fair Value = $74,400+$272,800+$99,200

    Total Asset Fair Value = $446400

    Recorder Amount

    Land = $74,400/$446400 * $390,600

    Land = 65100.001

    Building = $272,800/$446400 * $390,600

    Building = 238699.999

    Equipment = $99,200/$446400 * $390,600

    Equipment = 86799.99
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Pharoah Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600. The estimated fair values of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers