XYZ purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should XYZ record for the land, building and machinery?

Land Building Machinery

1 $22,000 $27,500 $60,500

2 $36,666 $36,667 $36,667

3 $30,000 $80,000 $40,000

4 $22,000 $58,667 $29,333

Question

XYZ purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should XYZ record for the land, building and machinery?

	Land	Building	Machinery
1	$22,000	$27,500	$60,500
2	$36,666	$36,667	$36,667
3	$30,000	$80,000	$40,000
4	$22,000	$58,667	$29,333

Quizplus · Accepted Answer

The Answer of XYZ purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should XYZ record for the land, building and machinery?

	Land	Building	Machinery
1	$22,000	$27,500	$60,500
2	$36,666	$36,667	$36,667
3	$30,000	$80,000	$40,000
4	$22,000	$58,667	$29,333

XYZ Purchased a Plant, Including Land, Building, and Machinery, for $110,000