During the current year company acquired a manufacturing facility with a total acquisition cost of $6,400,000. Acquisition included factory building, land and all existing equipment in the facility. The firm estimates the fair value of assets if acquired separately at a total of $4,450,000 with a fair value of the factory building at $2,136,000, the fair value of land at $890,000 and the fair value of equipment at $1,424,000. Determine the capitalized cost of each asset using a relative fair value method and prepare the necessary journal entry to record the acquisition assuming they paid cash.

Step one determine the capitalize cost of each asset using the table in picture one

Step to prepare the necessary journal entry to record acquisition assuming company pay cash. Options are acquisition cost, cash, equipment, factory building, and land

During the current year, the Great Tolson Company acquired a manufacturing facility at a total acquisit and all existing equipment in the facility. The firm estimates the fair value of the assets, if acquired sepa $2,136,000, the fair value of the land at $890,000, and the fair value of the equipment at $1,424,000 Determine the capitalized cost of each asset using the relative fair value method and prepare the neces paid cash for the facility Determine the capitalized cost of each asset using the table below Percentage of Total Fair Value Total Cost of Manufacturing Facility Allocation to Specific Balance Sheet Accounts Assets Type Factory Building Land Equipment Fair Value Total Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 4 Previous DELL