PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, building, and land are $1,000,000, $7,000,000, and $2,000,000, respectively. At what amount would the company record the building?

$4235350.

Explanation:

Given: Estimated fair value of the equipment= $1000000.

           Estimated fair value of the building=     $7000000.

           Estimated fair value of the land=           $2000000.

           One Purchase price of equipment, building and land= $6050500.

First finding the allocated percentage share of building.

Total amount shared by building, land and equipments=

∴ Total amount shared by building, land and equipments=

Allocated percentage share of building=

⇒ Allocated percentage share of building=

∴ Allocated percentage share of building=

Now, calculating amount would the company record the building.

Amount recorded for the building=

⇒ Amount recorded for the building=

∴ Amount recorded for the building= .

Hence, amount that company would record for building is $4235350.

answer; the correct answer to the above statement is (true);

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