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Question - Plowman Company purchased land and a building for $430,000. An appraisal was obtained that indicated that the land was worth $125,000 and the building was worth $375,000. What amount of the purchase price should Plowman Company allocate to the land and the building?
Land $125,000; building $375,000 Land $125,000; building $305,000 Land $107,500; building $322,500 Land $55,000; building $375,000.
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