Question
Alpha Company has three components in their lease agreement: the building, the equipment and the maintenance service. Total consideration in the contract is $500,000 per
Alpha Company has three components in their lease agreement: the building, the equipment and the maintenance service. Total consideration in the contract is $500,000 per year. Alpha Company has identified the following standalone prices:
| Component | Standalone Price |
| Building | $400,000 |
| Equipment | 100,000 |
| Maintenance/Service | 50,000 |
| Total | $550,000 |
Calculate the percentages and allocate the consideration to each component.
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Financial Accounting Australia And New Zealand Edition
Authors: Jerry J. Weygandt
11th Edition
1119668654, 978-1119668657
