Question
The Kawa Bonga chain purchased an existing hotel (all-in: land, building, and equipment) for a lump-sum of $30 million an financed this through a loan
The Kawa Bonga chain purchased an existing hotel (all-in: land, building, and equipment) for a lump-sum of $30 million an financed this through a loan acquired via a bank. The fair value of each of the components of the purchase is given below:
| Land | $1,000,000 |
| Building | $30,000,000 |
| Equipment | $750,000 |
| Fair value | $31,750,000 |
Based on this information, the resort will activate the building in the balance sheet for:
| a. | $30,000,000 |
| b. | $31,750,000 |
| c. | $28,346,457 |
| d. | None of these |
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AML Auditing Understanding Investment Banking
Authors: Bob Walsh
1st Edition
153959307X, 978-1539593072
