Brown Company purchased an old farm with a vacant building as a factory site for ($ 1,040,000).

Question:

Brown Company purchased an old farm with a vacant building as a factory site for $\$ 1,040,000$. Brown decided to use the building in its operations. How should Brown allocate the purchase price between the land and the building? How should this purchase be handled if the building is to be torn down?

Fantastic news! We've Found the answer you've been seeking!