Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carla Vista Flight Academy acquired a new site for its training operations. The company was able to find a small unused airport with an updated

Carla Vista Flight Academy acquired a new site for its training operations. The company was able to find a small unused airport with an updated runway and hangar that could be used to accommodate a flight simulator, small| aircraft, and classrooms. The location was ideal as it was close to the city centre with a large population base from which to attract students. Carla Vista paid $7.90 million to acquire the site. Prior to providing financing for the purchase, the bank required that an appraisal be completed of the property. The evaluation appraisal report came back with the following estimated market values: land $3,515,680, building $2,573,980, and land improvements $188,340. Carla Vista management explained, to the bank's satisfaction, that it paid the $1,622,000 premium because of the property's proximity to the city centre and access to a large population base from which to draw students. Allocate the 7.90-million purchase price to the land,building and land improvements. Allocated cost Land. $ ? Building. $ ? Land improvements $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Examination

Authors: W. Steve Albrecht

6th Edition

1337619671, 978-1337619677

More Books

Students also viewed these Accounting questions

Question

Explain how to handle criticism well.

Answered: 1 week ago

Question

example of Lewin's Change Management Model in hiring new graduates

Answered: 1 week ago