Olympic Products,Inc

Essay

Olympic Products,Inc.acquired some land,several buildings,and various pieces of equipment at a total cost of $5,600,000.Independent appraisals valued the land at $2,100,000,the buildings at $3,400,000,and the equipment at $500,000.The owner of the company thinks the land should be valued at $1,000,000,the buildings at $3,850,000 and the equipment at $750,000.Using the most appropriate method,what dollar amount should be assigned to each category of asset? Is there any reason the owner might want a higher or lower value assigned to any of the three asset categories?