Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the equipment should be:

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The purchase price allocated to each asset is based on their proportion of the total appraised value. The total appraised value is $150,000 (land) + $375,000 (building) + $75,000 (equipment) = $600,000. The equipment's appraised value ($75,000) represents 12.5% of the total ($75,000 / $600,000). Applying this percentage to the purchase price ($525,000) gives $525,000 * 12.5% = $65,625.

Comptel Corporation Purchased Land,a Building and Equipment for a Total