Chapter 08 Homework (Application) Lumo-Sum Purchase of Assets and Subsequent Events Dixon Manufacturing purchased, for cash, three large pieces of equipment. Based on recent sales of similar equipment, the fair market values are as follows: Piece 1 Piece 2 Piece 3 Required: 1. What value is assigned to each piece of equipment if the equipment was purchased for (a) $480,000, (b) $680,000, and (c) $800,000 Hint: First determine the percentage of the cost of each of the pieces of equipment to the total cost of all three pleces, rounded to one decimal place. If necessary, round any allocation calculations to the nearest dollar $200,000 $200,000 $440,000 Assigned Assigned Assigned a. $480,000 b. $680,000 c. $800,000 2. How does the purdhase of the equipment affect total assets? The purchase does not change total assets; it affects enly the composition of the assets Determine the entire market value of the assets acquired. Purchase price should be allocated to each asset based on the proporsionate market values of each asset Think about the irrekations when lumpsum purchases involve both depreciaie and non-depreciable assets consider the accounts uned and net changes in assets. Camider the value signed to assets affecting the balance