Lionworks Corporation made a basket purchase of three items. Item X was appraised at $30,000; item Y was appraised at $55,000; and item Z was appraised at $65,000. The purchase price was $125,000. The amount at which item X should be recorded (rounded to the nearest dollar)is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The total appraised value is $30,000 (X) + $55,000 (Y) + $65,000 (Z) = $150,000. The purchase price of $125,000 is allocated based on the appraised values. Item X's allocated cost: ($30,000 / $150,000) * $125,000 = $25,000.

Lionworks Corporation Made a Basket Purchase of Three Items