Lewis-Bruno Co

Short Answer

Lewis-Bruno Co.purchased 12 acres of land with an office building and warehouse on it for $2,000,000.The assets were appraised at: land $1,000,000, building $600,000, and warehouse $900,000.The assets were carried on the seller's books at: land $800,000, building $500,000, and warehouse $700,000.At what cost should the purchasing company record each of the assets? $\begin{array}{rrrr}&\text { Land } & \text { Building } & \text { Warehouse } \\\text { a. } & \$ 1,000,000 & \$ 600,000 & \$ 900,000 \\\text { b. } & \$ 800,000 & \$ 480,000 & \$ 720,000 \\\text { c. } & \$ 800,000 & \$ 500,000 & \$ 700,000 \\\text { d. } & \$ 1,000,000 & \$ 500,000 & \$ 500,000\end{array}$