Millbourne corporation has acquired a property that includes both land and a building for $550,000. The corporation hired an appraiser who has determined that the market value of the land is $350,000 and that of the building is $480,000, at what amount should the corporation record the cost of land? A) $147,000 B) $363,000 C) $231,000 D) $275,000
Millbourne corporation has acquired a property that includes both land and a building for $550,000. The corporation hired an appraiser who has determined that the market value of the land is $350,000 and that of the building is $480,000, at what amount should the corporation record the cost of land? A) $147,000 B) $363,000 C) $231,000 D) $275,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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Millbourne corporation has acquired a property that includes both land and a building for $550,000. The corporation hired an appraiser who has determined that the market value of the land is $350,000 and that of the building is $480,000, at what amount should the corporation record the cost of land?
A) $147,000
B) $363,000
C) $231,000
D) $275,000 
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