In a lump-sum purchase of assets, the relative-sales-value is defined as the:

Question

Quizplus · Accepted Answer

The relative-sales-value in a lump-sum purchase of assets is defined as the ratio of each asset's market value to the total market value. This helps to allocate the purchase price among the different assets acquired. Option A is incorrect as it only subtracts the value of the most valuable asset from the total price paid, which does not give the relative-sales-value of other assets. Option B is also incorrect as it compares the total price paid to the total market value rather than the individual assets' market value. Option D is incorrect as it compares the market value of the individual assets to the total book value, which is irrelevant in a lump-sum purchase.

In a Lump-Sum Purchase of Assets, the Relative-Sales-Value Is Defined