Chico Company Paid $950,000 for a Basket Purchase That Included

Multiple Choice

Chico Company paid $950,000 for a basket purchase that included office furniture,a building and land.An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture,$190,000;Building,$740,000;and Land,$132,000.Based on this information,what is the cost that should be allocated to the office furniture? (Round allocation percentage to two decimal places. )

A) $171,000
B) $190,000
C) $316,667
D) $105,000