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Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,275,000. According to independent appraisals, the fair values were $450,000

Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,275,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land. Required: Determine the initial valuation of the buildings and the land.

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