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Exercise 10-8(Algo) Lump-sum acquisition [LO10-2] Pinewood Company purchased two buildings on four acres...

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Accounting

Exercise 10-8(Algo) Lump-sum acquisition [LO10-2]
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,400,000. According to independent appraisals, the fair values were $675,000(building A) and $300,000(building B) for the buildings and $525,000 for the land.
Required:
Determine the initial valuation of the buildings and the land.
\table[[Asset,Initial Valuation],[Building A,$,675,000],[Building B,,300,000],[Land,,],[Total,$,975,000]]
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