Suppose a company purchased land and a building for \$20,000,000 cash. The appraised value of the building was \$17,000,000, and the land was appraised at \$8,000,000. *Note: for calculations, round to nearest whole percentage before calculating the allocation of the purchase price (i.e., if percentage calculates out to be 0.249, then round up to 25%)* What dollar amount of the purchase price will be allocated to the Land account?

The amount of the purchase price will be allocated to the Land account is \$6,400,000

Explanation:

For computing the purchase price of the land, first we have to compute the weightage of both the fixed assets which are shown below:

For building = Appraised value of building ÷ total value of fixed assets '

= \$17,000,000 ÷ \$25,000,000

= 68%

where,

Total value of fixed assets =  Appraised value of the building +  appraised value of the land

= \$17,000,000 + \$8,000,000

= \$25,000,000

For land       = Appraised value of land ÷ total value of fixed assets '

= \$8,000,000 ÷ \$25,000,000

= 32%

So, the purchase price of the land equal to

= Total purchase price of fixed assets × weightage of land

= \$20,000,000 × 32%

= \$6,400,000

Related Questions

Ted, Billie's agent, has authority to sign notes on Billie's behalf. Ted signs a promissory note promising to pay Carmen \$12,000 in three months using the signature "Ted, as agent for Billie." Is Billie liable for the \$12,000?

yes , Billie liable for the \$12,000

Explanation:

given data

promising pay Carmen =  \$12,000

time = 3 months

Billie liable for = \$12,000

solution

yes , Billie liable for the \$12,000

because it is very clear that given as Ned signed as Billie's agent

and he is sign for promising for pay \$12000 and take 3 month time also

therefore we can say that  Billie is liable

NOPE! BILLIE ISNT!

With manufacturing as the company's core strength, how will you develop a customer focus

* design competitive positions and strategies that capitalize on corporate strength. * unify the company across business unit and fuctional units, improve the transfer of knowledge and akill amongs them. * help employee understand management priorities. * integrate the use of technologies in carrying out the business process. * decide where to allocate resources. * invent new market and quickly enter emerging market. * enhance image and build customer loyalty.

Which of the following terms is defined by the​ activity, set of​ institutions, and processes for​ creating, communicating,​ delivering, and exchanging offerings that have value for​ customers, clients,​ partners, and society at​ large? A. Marketing
C. Distribution channel
D. Consumer goods
E. Promotion

Explanation:

Marketing involves the process of building business relationships between the seller and buyer, where the buyer would be influenced by seller to change their purchase behavior to positively suit the seller's products.

Marketing is beneficial to both the sellers and the buyers, because it leads to more sales for the seller and higher satisfaction for the consumers.

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020.

Total= 27,056 units

Explanation:

Giving the following information:

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter’s expected unit sales.

Production Budget:

1st quarter= 10,800

2nd quarter= 12,800

Ending inventory= (14,400*0.24)= 3,456

Total= 27,056 units

1. Identify a company or organization from which you have received high-quality products and describe the characteristics which make it high quality. 2. Identify a company or organization from which you have received poor quality products or services, describe the nature of the defects, and suggest ways in which Six Sigma might improve the quality.

Cost, delivery, service, Client relation management, Return policy, great employees

2. Sigma is a technique used to improve processes

see explanation below

Explanation:

Identify a company or organization from which you have received high-quality products and describe the characteristics which make it high quality.

The company in question will be XYZ(name withheld)

1. Cost: The cost of purchasing the products was simply less compared to to others. I also like the fact that there is usually price bonus during the holidays and festive seasons

2. Delivery: The delivery was within three days, which is okay for me. There is also a provision for express delivery .if i want it delivered in 24hours,but at more cost.

3. Client relation Management: The feedback from the clients relation managers was simply amazing. My complaints were responded to. Clarification was m

4. Return Policy: I spotted  a defective product in one of my orders, i returned it and got my money back in few hours

5.Service;; The service has to do with organisation and information control to suite the demands of customers

6. Great Employees: The employees seems to understand there roles and deliver there jobs with high efficiency. They also communicate excellence in handling there duties.

2,The company in question will be ABC(name withheld). I thought i was the only one who has received a poor service delivery, not until i heard same from my friend.

I made a complaint concerning a defective product, but I got no response from them.

Six Sigma tools are the problem solving tools used to support Six Sigma and other process improvement efforts.

They are: define, measure, analyze, improve, and control process is a data-driven quality strategy used to improve processes.

The ABC company should collect data of customer, analyze if the customers have been loyal or not over few months. What could be the issue. Monitor the trends of business. Are there techniques other competitors are harnessing?

Elements of poor quality goods and services include lack of time management, poor customer service, poor communication and update, disappointment, bad service quality, etc.

Characteristics of a good company include nice receptionist, time consciousness, handwork and promptness, etc

Explanation:

Norman Company had a transaction that increased its assets by \$5,000 and increased its liabilities by \$5,000. This transaction could have been a(n) a. payment for a one-year insurance policy that will expire next year. b. purchase of office equipment for cash. c. purchase of supplies for on account. d. payment of a dividend. e. investment of cash into the business by the stockholders.

The answer is: C) purchase of supplies for on account.

Explanation:

When Norman Company bought office supplies it will record them as supplies on hand, which are a type of current asset.

When you buy things on account, it means that you will pay the purchase at a later date, so a liability must be recorded.

Which of the following statements about economic resources is false?A) Economic resources include financial capital and money.B) Economic resources are also called factors of production.C) Economic resources are used to produce goods and services.D) Some economic resources are human-made while others are found in nature.

A) Economic resources include financial capital and money.

Explanation:

Economics resources are the inputs used in the production of other goods and services. They are mostly the factors of production. Economic resources can be grouped into human resources, which includes labor, entrepreneurship, or management. Non-human resources refer to land, technology, finances, and minerals.

Economics resources do not refer to financial capital and money only. Finances alone cannot complete the production process of other goods and services. Financial capital and money are only a part of economic resources.

A is the best

17.   Chef A says that garnish should be added to a soup right before serving. Chef B says that garnish should be cooked with the other ingredients in a soup. Which chef is correct? A. Chef A is correct.
B. Both chefs are correct.
C. Chef B is correct.
D. Neither chef is correct.

The correct answer is A, Chef A is correct.

Explanation:

Garnishing is the art of decorating items especially food items. Garnishing is done right before serving the food. Garnished items are not cooked with the food. They are kept separate and are decorated on the food before serving. So chef A is right in this situation that the garnish should be added to a soup right before serving.

The answer is A. I am 100% certain.

Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip would not affect the disk drive motor until after six to 12 months of use. This delay in the problem's appearance meant that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all those that had the faulty chip. This action is an example of