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How will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased? Stack Investors is a
How will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased? Stack Investors is a real estate company, specializing in student housing rentals. Black Squirrel Rentals recently purchased a house at 121 Crain Aven Rooms in the house will be rented to students. The real estate purchase included the house and the land (.0611 acres) upon which it is located. Assume that the house has an appraised value of $77,350, while the land has an appraised value of $13,650. What method is used to allocate the cost of a group of long-term assets purchased together based on the market or appraised values of those assets? A. Cost B. Lowest ratio C. Appraisal D. Relative-sales value
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