1. YourcompanybuysacomputersystemfromIBMfor$3millionandpaysIBM$200,000toinstallthecomputersystem.The$3millionisoncreditandyourcompanypays$100,000ofinterestontheloaninthecurrentyear.Theacquisitioncostofthecomputersystemattheendofthecurrentyearwillbe:

   a.	$.3million
   b.	$3.2million
   c.	$.2million
   d.	$3million
   e.	$3.1million
   f.	$3.3million

Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $8,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment in the general ledger would be:

Hint: this is a basket purchase of PP&E-- not the purchase of a business. (No goodwill is involved.)

a.	$4,500,000, $3,000,000, $2,500,000.
b.	$4,500,000, $3,000,000, $500,000.
c.	$3,600,000, $2,400,000, $2,000,000.
d.	None of these.