Question

Riverbed Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building $228,800, and equipment $83,200. At what amounts should each of the three assets be recorded

Answer 1

Land=$54,600, Building = $200,200, Equipment = $72,800

Step-by-step explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = 62,400 + 228,800 + 83,200

Total Asset Fair Value = 374,400

Recorder Amount

Land = 62,400 / 374,400 * 327,600 = $54600

Building = 228,800 / 374,400 * 327,600 = $200200

Equipment = 83,200 / 374,400 * 327,600 = $72,800