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1. How is the cost of a lump-sum purchase allocated to the individual assets acquired? Provide a simple example of how the allocation would
1. How is the cost of a lump-sum purchase allocated to the individual assets acquired? Provide a simple example of how the allocation would be performed if your company paid $1,200,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,400,000 for the 3 asset components $600,000, $500,000, and $300,000, respectively.
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