The cost of assets acquired in a lump-sum purchase must be allocated using which method?

Question

Quizplus · Accepted Answer

The Relative-sales-value method is the most appropriate method for allocating the cost of assets acquired in a lump-sum purchase. This method allocates the cost according to the relative sales value of each asset acquired. It provides a fair and rational allocation of the total cost of the purchased assets based on their respective fair market values.

The Cost of Assets Acquired in a Lump-Sum Purchase Must