Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $260,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $80,000 clearing and grading the land in preparation for the construction of a new building

Question

Uriah Lane

Mathematics

31 July, 11:35

Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $260,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $80,000 clearing and grading the land in preparation for the construction of a new building

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Marlene Allison · Answer 1

purchase cost + 338500

Step-by-step explanation:

given that immediately after acquisition, Samtech demolished the building. Demolition costs were $260,000 and the salvaged materials were sold for $6,500.

In addition, Samtech spent $80,000 clearing and grading the land in preparation for the construction of a new building.

Thus initial valuation of the asset = purchase cost + expenses - sale value of salvaged materials

Hence here we get

initial value = purchase cost + 260000-6500+80000

= purchase cost + 338500