A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:
A)$0
B)$36,000
C)$42,000
D)$45,000
E)$100,000

Question

Quizplus · Accepted Answer

The total appraised value is $125,000 ($62,000 + $45,000 + $18,000). The land's appraised value is $45,000. The allocation for the land is ($45,000/$125,000) * $100,000 = $36,000.

A Company Purchased Property for $100,000