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Use the Following Information to Answer Questions 97 & 98

Question 61

Multiple Choice

Use the following information to answer questions 97 & 98.
Jamison Company purchased the assets of Booker Company at an auction for $4,200,000. An independent appraisal of the fair value of the assets is listed below:
Land .........$1,425,000
Building .....2,100,000
Equipment ...1,575,000
Trucks ..........2,550,000
-Assuming that specific identification costs are impracticable and that Jamison allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Trucks?


A) $1,400,000
B) $2,100,000
C) $2,520,000
D) $2,550,000

Correct Answer:

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