Allocation of Package Purchase Price
Tamock Company purchased a plant from one of its suppliers. The $995,000 purchase price included the land, a building, and factory machinery. Tamock also paid $5,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased:
|Property||Assessed Value |
Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamock Company’s records.
|Asset||Allocation of |
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