Anderson Corporation has purchased a group of assets for $20,300.The assets and their relative market values are listed below.

Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Anderson Corporation has purchased a group of assets for $20,300.The assets and their relative market values are listed below.

Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Quizplus · Accepted Answer

B)Cost of land = Lump-sum purchase price × [Land / (Land + Equipment + Building)] =
$20,300 ×[ $6800 / ($6800 + $2300 + $3600)] = $10,962

Anderson Corporation Has Purchased a Group of Assets for $20,300