I:13-70 Assume the same facts as in Case Study Problem I:13-69 except you have the following market values as a result of an appraisal:

Equipment $ 250,000 Building 500,000 Land 140,000 Inventory 110,000 Total $1,000,000 Tom insists that $150,000 of the purchase price should be allocated to inventory and

$100,000 should be allocated to land. He refuses to complete the purchase unless the allocation is made as he requests. What action should you take with respect to Tom’s request? (See Chapter I:10 for a discussion of valuation issues in the purchase and sale of a business.)