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Background: RayTech Manufacturing purchased land and building for $5 million. In addition to the purchase price, RayTech made the following expenditures in connection with the

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Background: RayTech Manufacturing purchased land and building for $5 million. In addition to the purchase price, RayTech made the following expenditures in connection with the purchase of the land and building: Title Insurance Legal Fees for Drawing the Contract Pro-rated Property Taxes for Period After Acquisition State Transfer Fees Party Supplies for Dean Love's Annual Gala $ 28,000 6,000 48.000 5.200 26,000 Directions: First, determine the initial valuation of each asset RayTech acquired in these transactions. Second, determine the initial valuation of each asset, assuming that immediately after acquisition, RayTech demolished the building. Demolition costs were $370,000 and the salvaged materials were sold for $7.000. In addition, RayTech spent $91,000 clearing and grading the land in preparation for the construction of a new building Initial valuation of each asset acquired: Initial Valuation Assets Land Building Land Improvements Initial valuation of each asset acquired given various assumptions, mentioned above: Initial Valuation Assets Land Building Land Improvements Background: RayTech Manufacturing purchased land and building for $5 million. In addition to the purchase price, RayTech made the following expenditures in connection with the purchase of the land and building: Title Insurance Legal Fees for Drawing the Contract Pro-rated Property Taxes for Period After Acquisition State Transfer Fees Party Supplies for Dean Love's Annual Gala $ 28,000 6,000 48.000 5.200 26,000 Directions: First, determine the initial valuation of each asset RayTech acquired in these transactions. Second, determine the initial valuation of each asset, assuming that immediately after acquisition, RayTech demolished the building. Demolition costs were $370,000 and the salvaged materials were sold for $7.000. In addition, RayTech spent $91,000 clearing and grading the land in preparation for the construction of a new building Initial valuation of each asset acquired: Initial Valuation Assets Land Building Land Improvements Initial valuation of each asset acquired given various assumptions, mentioned above: Initial Valuation Assets Land Building Land Improvements

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