Farmdale Company purchased three assets for $400,000. These assets have fair market values as follows: If you were Farmdale's accountant, how much of the lump sum purchase would you allocate to the inventory?

Name: Farmdale Company purchased three assets for $400,000. These assets have fair market values as follows: If you were Farmdale's accountant, how much of the lump sum purchase would you allocate to the inventory?
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Question

Farmdale Company purchased three assets for $400,000. These assets have fair market values as follows:  If you were Farmdale's accountant, how much of the lump sum purchase would you allocate to the inventory?

Quizplus · Accepted Answer

($50,000 / $250,000) x $400,000 = $80,000

Farmdale Company Purchased Three Assets for $400,000