Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be:

BuildingLandFixturesa.$880,000$1,320,000$2,200,000b.$570,000$855,000$1,425,000c.$855,000$570,000$1,425,000d.None of these answer choices are correct.

rev: 11_23_2019_QC_CS-191879

Multiple Choice

• Option A
• Option B
• Option C
• Option D