A company purchased a piece of equipment by paying $$19,000$ cash. A shipping cost of

$$1,100$ to get the equipment to its factory was also incurred. The fair value of the equipment

was $$9,800$ at the time of the purchase. For what amount should the company record the

equipment?

A$)$ $$10,900$

B$)$ $$9,800$

C$)$ $$20,100$

D$)$ $$19,000$

A company purchased a $3-$acre tract of land for a building site for $$360,000.$ The company

demolished the old building at a cost of $$13,000,$ but was able to sell scrap from the building

for $$1,600.$ The cost of title transfer was $$950$ and attorney fees for reviewing the contract

was $$520.$ Property taxes paid were $$3,500,$ of which $$300$ covered the period after the

purchase date. The capitalized cost of the land is:

A$)$ $$376,070.$

B$)$ $$377,570.$

C$)$ $$242,570.$

D$)$ $$377,820.$

The balance sheet of Cattleman's Steakhouse shows assets of $$88,800$ and liabilities of

$$17,000.$ The fair value of the assets is $$93,000$ and the fair value of its liabilities is $$17,000.$

Longhorn paid Cattleman's $$101,000$ to acquire all of its assets and liabilities. Longhorn

should record goodwill on this purchase of:

A$)$ $$33,600.$

B$)$ $$25,000.$

C$)$ $$8,600.$

D$)$ $$8,000.$

Assets acquired in a lump$-$sum purchase are valued based on:

A$)$ Their assessed valuation.

B$)$ Their relative fair values.

C$)$ The present value of their future cash flows.

D$)$ Their cost plus the difference between their cost and fair values.