Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Casillas Company paid cash and purchased the assets of Buffon Company at an auction for $4.900,000 on October 1 2020. The information on the book

image text in transcribed
Casillas Company paid cash and purchased the assets of Buffon Company at an auction for $4.900,000 on October 1 2020. The information on the book values of the assets on Buffon's balance sheet is listed below: Land: $820,000 Building: S1118.000 Inventory: $530,000 Machine: $780,000 Based on an independent appraisal, the fair value of inventory is determined to be equal to its book value, and the fair values of land, building and machine are determined to be $1850,000 $3,400,000 and $220,000, respectively. In the entry made by Casillas on October 1 2020 to record the purchase, the cost of the inventory will be approximately Multiple Choice $499,569 S520.000 Oo oo O 5432,833 O $518,321

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

17th Edition

0073379654, 9780073379654

More Books

Students also viewed these Accounting questions

Question

How does your message use nonverbal communication?

Answered: 1 week ago

Question

What reactive strategies might you develop?

Answered: 1 week ago