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Allocation of Package Purchase Price Tamock Company purchased a plant from one of its suppliers. The $950,000 purchase price included the land, a building, and factory machinery. Tamock also paid $6,

Allocation of Package Purchase Price
Tamock Company purchased a plant from one of its suppliers. The $950,000
purchase price included the land, a building, and factory machinery. Tamock
also paid $6,000 in legal fees to negotiate the purchase of the plant. Arn
appraisal showed the following values for the items purchased:
Assessed Value
Property
Land
Building
Machinery318,000
$126,000
456,000
TotalF
$900,000
Using the assessed value as a guide, allocate the total purchase price of the
plant to the land, building, and machinery accounts in Tamock Company's
records.
Do not round until your final answers. Round answers to the nearest dollar.

Sep 07 2020 View more View Less

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