Question

Anderson Company has purchased a group of assets for $ 21 comma 100. The assets and their relative market values are listed below. Land $ 6 comma 500 Equipment 2 comma 600 Building 3 comma 500 Which of the following amounts would be debited to the Land​ account? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)A. $3,320
B. $4,100
C. $8,798
D. $4,648

Answer 1

Answer:

$10,710

Explanation:

Given:

Total amount paid for assets = $21,000

Market value of assets

Land = $ 6,500

Equipment = $2,600

Building = $3,500

Total Market  value of Assets = $6,500 + $2,600 + $3,500 = $12,600

Computation :

Amount Debited to Land account = (Market value of particular assets / Total Market  value of Assets) x Total amount paid for assets

= ($6,500/$12,600) x $21,000

= 0.51 x $21,000

= $10,710