Bingo Corporation has acquired a property that included both land and a building for $520,000.The corporation hired an appraiser who has determined that the market value of the land is $320,000 and that of the building is $400,000.At what amount should the corporation record the cost of the building? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

B)Building percentage of total value = 400,000 / (320,000 + 400,000)= 0.56
Cost of building = Lump-sum purchase price / Building percentage of total value =
$520,000 × 0.56 = $291,200

Bingo Corporation Has Acquired a Property That Included Both Land