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Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the trailer at $60,000 and $40,000, respectively. At what amount should Radner
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Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the trailer at $60,000 and $40,000, respectively. At what amount should Radner record the truck?

a. $60,000
b. $54,000
c. $36,000
d. $0

User JfMR
by
3.0k points

1 Answer

4 votes

Answer:

Truck $54,000

Step-by-step explanation:

Basket purchase price of assets is always pro rated in ratio of their fair values

=90,000*(60,000/100,000

=54,000

Truck=$54,000

Trailer=90,000-54,000=$36,000

User Tatik
by
4.1k points
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