Question
Al Mehri Company purchased a factory, on January 1, 2020 for lump-sum of RO 250,000 paid via bank. The fair value of each of component
Al Mehri Company purchased a factory, on January 1, 2020 for lump-sum of RO 250,000 paid via bank. The fair value of each of component of the purchase is given below. Calculate the amount at which Equipment shall be recognized on purchase date?
| Assets | Fair Market Value |
| Land | 34,000 |
| Building | 22,000 |
| Equipment | 44,000 |
a.
OMR 112,000
b.
OMR 111,360
c.
OMR 44,000
d.
OMR 110,000
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
