Ask Question
10 July, 11:35

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000. What value will be recorded for the building?

A. $175,000

B. $950,000

C. $800,000

D. $1,100,000

+5
Answers (1)
  1. 10 July, 11:39
    0
    B. 950,000

    Explanation:

    The value of the building is calculated as the amount of appraisal is $374,000 for Land $1,100,000 for building and $726,000 for equipment which makes a total of $2,200,000 ($374,000 + $1,100,000 + $726,000). The amount of building appraisal is then divided by the total amount of appraisal to calculate the percentage of building appraisal which gives us a percentage of 5% ($1,100,000 / $2,200,000) and then finally this 5% is multiplied by the amount of property cost of Harding which gives us the value of building which is $950,000 ($1,900,000 * 5%).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid ...” 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