For $5,550,000, Bale, Inc., purchased another company\'s land, building, and equ

Question

For $5,550,000, Bale, Inc., purchased another company's land, building, and equipment. Independent appraisals indicate the values of these assets as follows: land, $600,000; building, $3,600,000; and equipment, $1,800,000. How much should be recorded as the acquisition cost of each asset?
Answer
A. Land, $600,000; building, $3,600,000; equipment, $1,800,000
B. Land, $555,000; building, $3,330,000; equipment, $1,665,000
C. Land, $525,000; building, $3,375,000; equipment, $1,650,000
D. Land, $550,000; building, $3,200,000; equipment, $1,800,000
E. None of the above

Explanation / Answer

D. Land, $550,000; building, $3,200,000; equipment, $1,800,000

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