Question
Firm ABC acquired all of the assets in a manufacturing facility for a lump-sum price of $9,000. According to independent appraisals, the fair value of
Firm ABC acquired all of the assets in a manufacturing facility for a lump-sum price of $9,000. According to independent appraisals, the fair value of acquired assets were:
- Building = $4,000
- Patent = $2,000
- Land = $3,000
- Equipment = $1,000
Assuming Firm ABC correctly recorded the acquisition, what is the book value of the building?
| a. | $1,800 | |
| b. | $3,600 | |
| c. | $2,700 | |
| d. | $900 |
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Horngrens Accounting Volume 1
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood
11th Canadian Edition
0135359708, 9780135359709
