The portion of a group purchase of land and a build-up for $651,000 allocated to land when the land is appraised at $170,000 and the building on the land is appraised at $510,000, is
A) $498,250.
B) $162,750.
C) $172,750.
D) $488,250.

Question

Quizplus · Accepted Answer

The total appraised value is $170,000 (land) + $510,000 (building) = $680,000. The portion allocated to land is ($170,000 / $680,000) * $651,000 = $162,750.

The Portion of a Group Purchase of Land and a Build-Up