Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 11, Problem 11.3E
a.
To determine
To allocate: Purchase cost to each required asset.
Given information:
Cost of expansion is $5,000,000.
Fair value of building is $3,200,000.
Fair value of land is $1,600,000.
Fair value of Machinery and equipment is $864,000.
Fair value of inventory is $183,500.
Fair value of manufacturing supplies is $52,500.
b.
To determine
To prepare:
c.
To determine
To prepare: Journal entry to record the
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Chapter 11 Solutions
Intermediate Accounting
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