Pioneer Corporation purchased for $450,000 land and a building that will be used in farming operations. The appraised value of the land is $100,000 and the appraised value of the building is $400,000.
Required: 1)What amount of the purchase price will be allocated to the land?2)What amount of the purchase price will be allocated to the building?

Question

Quizplus · Accepted Answer

The Answer of Pioneer Corporation purchased for $450,000 land and a building that will be used in farming operations. The appraised value of the land is $100,000 and the appraised value of the building is $400,000.
Required: 1)What amount of the purchase price will be allocated to the land?2)What amount of the purchase price will be allocated to the building?

Pioneer Corporation Purchased for $450,000 Land and a Building That