$10$pIc $10$: Acquisition of Property, Plant and Equipment

Question $12$

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Riverboat Adventures pays $$310,000$ plus $$15,000$ in closing costs to buy out a competitor. The real estate consists of land appraised at $$35,000,$ a building appraised at $$105,000,$ and paddleboats appraised at $$210,000.$ Compute the cost that should be allocated to the building.

Select one:

a$.$ $$97,500.$

b$.$ $$105,000.$

c$.$ $$89,178.$

d$.$ $$140,000.$

e$.$ $$93,000.$

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