Question
On April 1, Mooney Corporation purchased for $1,620,000 a tract of land on which a warehouse and office building was located. The following data were
On April 1, Mooney Corporation purchased for $1,620,000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property:
Current Assessed Valuation Vendor's Original Cost
Land $600,000 $550,000
Warehouse 400,000 370,000
Office building 800,000 680,000
Total: $1,800,000 $1,600,000
What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively?
a. Land, $600,000; warehouse, $400,000; office building, $800,000.
b.Land, $550,000; warehouse, $370,000; office building, $680,000.
c. Land, $556,875; warehouse, $374,625; office building, $688,500.
d. Land, $540,000; warehouse, $360,000; office building, $720,000.
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