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 equipment?

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 equipment?
Brand: Quizplus
Rating: 4.9 (47 reviews)

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 equipment?

Quizplus · Accepted Answer

($125,000 / $250,000) x $400,000 = $200,000

Farmdale Company Purchased Three Assets for $400,000