Question On January 1, 2013 Tembo Corp. purchased a land and a building as a basket purchase for $500,000. The appraised values are: $300,000 for the building and $500,000 for the land. How much of the $500,000 purchase price will be charged to the building account using the relative market values’ method?

O5DYC0 The Asker · Accounting

On January 1, 2013 Tembo Corp. purchased a land and a building as a basket purchase for $500,000. The appraised values are: $300,000 for the building and $500,000 for the land. How much of the $500,000 purchase price will be charged to the building account using the relative market values’ method?

More
Community Answer
IGFZGO

Total appraised value = 300000+500000 = 800000Purchase p ... See the full answer