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Andrew Lupino went into business by purchasing a car lubrication station consisting of land, a...

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Accounting

Andrew Lupino went into business by purchasing a car lubrication station consisting of land, a building, and equipment. The seller's original asking price was $210,000. Lupino hired an appraiser for $2,000 to appraise the assets. The appraised valuations were:

Property Assessed Value
Land $38,000
Building 95,000
Equipment 57,000
Total $190,000

After receiving the appraisal, Lupino offered $170,000 for the business. The seller refused this offer. Lupino then offered $180,000 for the business, which the seller accepted. Using the appraisal values as a guide, allocate the total purchase price of the car lubrication station to the Land, Building, and Equipment accounts.

Asset Allocation of Purchase Price
Land $Answer
Building Answer
Machinery Answer
Total $Answer

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