Question
An existing coffee shop, including land, building and equipment was purchased for $30,000. The land, building and equipment components were not identified, but you do
An existing coffee shop, including land, building and equipment was purchased for $30,000. The land, building and equipment components were not identified, but you do have fair market value of the new components, listed below.
Problem Requirement Calculate the allocation of the purchase price to land, building and equipment. Show calculations.
Purchase Price $ 30,000
Fair Market Value - New $
Land 20,000
Building 20,000
Equipment . 10,000
Total Fair Market Value 50,000
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
