Lump-sum purchase of plant assets LO C1 On January 1, 2022, Wells and McComas Company purchased Ross Company at the price shown. The market values of the assets purchased are given. Allocate the purchase price among the assets purchased for each separate purchase price.

Allocate the purchase price among the purchased assets.

Assets Purchased	Market Value		Purchase Price 1		Purchase Price 2
			$11,000,000		$17,800,000
Land	$8,400,000
Building	$3,500,000
Equipment	$1,400,000
Vehicles	$700,000
Goodwill
Totals	$14,000,000