Question

1) Alexa Corp acquired several assets from Bonsai Corp. for $4,200,000. Assets acquired included a building, a stamping machine, and a forklift. An appraisal of the assets valued the building at $2,400,000, the press at $1,000,000, and the conveyor belt at $600,000. What is the value that will be assigned to each of these assets?

Answer 1

Value assigned for Building = $2,520,000

Value assigned for Press = $1,050,000

Value assigned for Conveyor belt = $630,000

Explanation:

Total appraisal value = Building + Press + Conveyor belt

Total appraisal value = 2,400,000 + 1,000,000 + 600,000

Total appraisal value = $4,000,000

Value assigned for Building = (2,400,000/4,000,000)*4,200,000

Value assigned for Building = $2,520,000

Value assigned for Press = (1,000,000/4,000,000)*4,200,000

Value assigned for Press = $1,050,000

Value assigned for Conveyor belt = (600,000/4,000,000)*4,200,000

Value assigned for Conveyor belt = $630,000