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 11.3BE
To determine
The cost of acquisition assigned to each asset in a basket purchases.
Given information:
Price of the office furniture is $1,800.
Price of the integrated telephone system is $3,700.
Price of desktop computer system is $4,500.
Bulk price charged is $6,000.
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Students have asked these similar questions
Delibird company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the units
List price 152,000
Trade discounts and rebates taken 56,000
installation and assembly cost 3,200
initial delivery and handling cost 6,400
purchase discount 2%
what is the acquisition cost of the new computer?
Enterprises acquired three different pieces of furniture and equipment for its newly renovated office. The bulk purchase from Wonder Technologies, Inc. included the following assets and corresponding retail prices: office furniture,$1,800; an integrated telephone system, $3,700; and a desktop computer system, $4,500. Wonder charged a bulk price of $6,000. Requirement:
Determine the value assigned to each asset.
Asset Type
Value Assigned to Each Asset
Office Furniture
Telephone System
Computer Equipment
Total
Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had
been purchased separately: Office furniture, $160,000; Building, $500,000; and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture?
Note: Round intermediate percentage values to a whole percentage.
Multiple Choice
$235,562
$66,500
$160,000
$120,000
Chapter 11 Solutions
Intermediate Accounting
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