Question
On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $563,000 for real estate plus $30,400 cash in closing costs. The real
On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $563,000 for real estate plus $30,400 cash in closing costs. The real estate included land appraised at $193,280; land improvements appraised at $60,400; and a building appraised at $350,320.
| (a) | (b) | (c) | |
| PPE Asset | Appraised Values | Ratio of Individual Appraised Value to Total Appraised Value (a) ÷ Total Appraised Value | Cost Allocation (b) × Total Actual Cost |
On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $563,000 for real estate plus $30,400 cash in closing costs. The real estate included land appraised at $193,280; land improvements appraised at $60,400; and a building appraised at $350,320.
| (a) | (b) | (c) | |
| PPE Asset | Appraised Values | Ratio of Individual Appraised Value to Total Appraised Value (a) ÷ Total Appraised Value | Cost Allocation (b) × Total Actual Cost |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
