What amount should the building be recorded

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Question - California Food Group purchased a restaurant building, to open a new location. The restaurant was already equipped with the kitchen equipment and dining areas, and with some modification would be perfect for the new California Foods design. The company paid $450,000 for the equipment, building and surrounding land and parking lot. The purchase was appraised as follows:

Building $420,000

Land $60,000

Kitchen equipment and dining area furnishings $90,000

Parking lot $30,000

Total appraised value $600,000

Required - What amount should the building be recorded for on California Food Group's books?

Reference no: EM132950595

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