Belmont Corporation made a basket purchase of land, a building and equipment, paying a total of $1,500,000. Market values for the assets were not available, but the appraised values were $300,000 for the land, $900,000 for the building, and $600,000 for equipment. What amounts should be recorded in the Land, Building, and Equipment accounts, respectively?
A) $300,000, $900,000, and $600,000
B) $1,500,000, $-0-, and $-0-
C) $250,000, $750,000, and $500,000
D) $500,000, $500,000, and $500,000

Question

Quizplus · Accepted Answer

Calculation: $300/$1,800 × $1,500,000 = $250,000; $900/$1,800 × $1,500,000 = $750,000; $600/$1,800 × $1,500,000 = $500,000.

Belmont Corporation Made a Basket Purchase of Land, a Building