DC bought Assets A, B, and C for a total cash price of $324,000. The assets were reflected in the accounts of the seller as follows: A, $75,000, B, $60,000, and C, $65,000. The property tax assessments were: A, $15,000, B, $4,000, and C, $6,000. Because the tax assessments were made by untrained people, they bear little resemblance to actual market prices. An independent and competent appraisal showed the following: A, $105,000, B, $70,000, and C, $95,000. DC should record the costs of the assets as follows: $$\begin{array} { | l | l | l | }
\hline \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 \$ 108,000 & \$ 108,000 & \$ 108,000 \
\hline 2126,000 & 84,000 & 114,000 \
\hline 3105,000 & 70,000 & 95,000 \
\hline 475,000 & 60,000 & 65,000 \
\hline
\end{array}$$

Question

DC bought Assets A, B, and C for a total cash price of $324,000. The assets were reflected in the accounts of the seller as follows: A, $75,000, B, $60,000, and C, $65,000. The property tax assessments were: A, $15,000, B, $4,000, and C, $6,000. Because the tax assessments were made by untrained people, they bear little resemblance to actual market prices. An independent and competent appraisal showed the following: A, $105,000, B, $70,000, and C, $95,000. DC should record the costs of the assets as follows: $$\begin{array} { | l | l | l | } 
\hline \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 \$ 108,000 & \$ 108,000 & \$ 108,000 \
\hline 2126,000 & 84,000 & 114,000 \
\hline 3105,000 & 70,000 & 95,000 \
\hline 475,000 & 60,000 & 65,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of DC bought Assets A, B, and C for a total cash price of $324,000. The assets were reflected in the accounts of the seller as follows: A, $75,000, B, $60,000, and C, $65,000. The property tax assessments were: A, $15,000, B, $4,000, and C, $6,000. Because the tax assessments were made by untrained people, they bear little resemblance to actual market prices. An independent and competent appraisal showed the following: A, $105,000, B, $70,000, and C, $95,000. DC should record the costs of the assets as follows: $$\begin{array} { | l | l | l | } 
\hline \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 \$ 108,000 & \$ 108,000 & \$ 108,000 \
\hline 2126,000 & 84,000 & 114,000 \
\hline 3105,000 & 70,000 & 95,000 \
\hline 475,000 & 60,000 & 65,000 \
\hline
\end{array}$$

DC Bought Assets A, B, and C for a Total