Lump Sum Purchase

Allocation of Total Cost into Three Separate Asset Accounts

Marsh Co. paid $90,000 cash to acquire a group of three assets consisting of: Land, Land Improvements and Building.

The FMV, Fair Market Value, of these three assets at the time of purchase

were: (Based on certified appraisals)

Land $ 30,000

Land Improvements 10,000

Building 60,000

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Total FMV: $

First: Using the template below (optional), calculate the Percentage of Total FMV for Each Asset

ASSET Appraised FMV = Percent of Total FMV

Land $30,000 /// $100,000 = %

Land Improvements 10,000

Building 60,000

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Total FMV $100,000 100%