Solution-What value should be allocated to the building

What value should be allocated to the building

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Reference no: EM132481876

Question 1 - Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:

PP&E Element Amount

Land $10,000

Building 35,000

Equipment 50,000

Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.)

Question 2 - Annapolis Company was recently sold for $500,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:

Item Amount

Accounts Receivable assumed by buyer $132,000

Inventory $255,000

Property, Plant & Equipment (net) $585,000

Notes Payable assumed by buyer $655,000

How much should be recorded as Goodwill for this transaction?

Reference no: EM132481876

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What value should be allocated to the building

Reference no: EM132481876

Reference no: EM132481876

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