Reference no: EM132532610

Forest Company paid $38,000,000 for a warehouse and related assets from a company that was in bankruptcy. The warehouse includes land, building, moving equipment, and heating/ventilation/air conditioning (HVAC) system. An independent appraiser valued these items individually as follows:

PPE category                  Appraised value

Land                              $10,400,000

Building                           23,400,000

Moving equipment               3,900,000

HVAC system                    14,300,000

Total                              $52,000,000

Required:

Question 1: Allocate the purchase price among the assets acquired.