Lionworks Corporation made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000;and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item X should be recorded (rounded to the nearest dollar)is:
A)$42,000.
B)$29,167.
C)$41,667.
D)$38,043.

Question

Quizplus · Accepted Answer

The total appraised value is $150,000 ($35,000 + $55,000 + $60,000). The proportion of the total value for item X is $35,000/$150,000. The recorded value for item X is $125,000 * ($35,000/$150,000) = $29,167.

Lionworks Corporation Made a Basket Purchase of Three Items