Chesapeake Company Paid $475,000 for a Basket Purchase That Included

Multiple Choice

Chesapeake Company paid $475,000 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 - $95,000; Building - $370,000, Land - $66,000. Based on this information the amount of cost that would be allocated to the office furniture is closest to:

A) $95,000.
B) $85,500.
C) $158,333.
D) $52,500.