Tanner Company acquired equipment #1, equipment #2, and equipment #3, for $600,000. Equipment #1 is appraised at $240,000, equipment # 2 is appraised at $310,000 and equipment #3 is appraised for $110,000.The cost of equipment #2 is:

Question

Quizplus · Accepted Answer

The cost of equipment #2 is $281,818. This is calculated by multiplying the total cost of the equipment ($600,000) by the appraised value of equipment #2 ($310,000) and dividing by the total appraised value of all three pieces of equipment ($660,000).

Tanner Company Acquired Equipment #1, Equipment #2, and Equipment #3