Ask Question
22 May, 05:18

Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the trailer at $60,000 and $40,000, respectively. At what amount should Radner record the truck?

a. $60,000

b. $54,000

c. $36,000

d. $0

+1
Answers (1)
  1. 22 May, 05:27
    0
    Truck $54,000

    Explanation:

    Basket purchase price of assets is always pro rated in ratio of their fair values

    =90,000 * (60,000/100,000

    =54,000

    Truck=$54,000

    Trailer=90,000-54,000=$36,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the trailer at ...” 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