Question
Mehran Company purchased a factory, on January 1, 2020 for lump sum of RO 250,000 paid via bank. The fair value of each of component
Mehran Company purchased a factory, on January 1, 2020 for lump sum of RO 250,000 paid via bank. The fair value of each of component of the purchase is given below. Calculate the amount at which Equipment shall be recognized on purchase date?
Assets | Fair Market Value |
Land | 324,000 |
Building | 44,000 |
Equipment | 32,000 |
a. OMR 202,500
b. OMR 20,000
c. OMR 27,500
d. OMR 32,000
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
