1.A company acquired an office building on three acres of land for a lump-sum price of $2,900,000. The building was completely equipped. According to independent appraisals, the fair values were $1,840,000, $1,380,000, and $1,380,000 for the building, land, and equipment, respectively. At what amount would the company record the building?

• $1,860,000.

• None of these answer choices are correct.

• $1,160,000.

• $1,320,000.

2. A company purchased new equipment for $61,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,050; sales tax paid $3,200; and installation cost, $2,600. The cost recorded for the equipment was:

• $65,250.

• $67,850.

• $62,050.

• $61,000.

3. Alamos Co. exchanged equipment and $17,300 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,300, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of:

• $(10,300).

• $27,600.

• $10,300.

• $0.

4. A company purchased land, a building, and equipment for one price of $1,550,000. The estimated fair values of the land, building, and equipment are $193,750, $1,356,250, and $387,500, respectively. At what amount would the company record the land?

• $193,750

• $155,000

• $1,550,000

• $165,000