Question
Due to recent floods in Charra Int. Co. is winding the business and selling its factory building and equipment along with the land its being
Due to recent floods in Charra Int. Co. is winding the business and selling its factory building and equipment along with the land its being constructed on for Rs. 20,000,000. You decide to buy the land, building and equipment. However, now you are confused as to how to record it in your financial statements Upon inquiry in the open market, you find out that the fair market values of the three assets are as follows: Land: Rs. 10,000,000 Building: Rs. 10,000,000 Equipment: Rs. 5,000,000 What would be the cost assigned to each item? Land: _________________ Building: ______________ Equipment: ____________
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