Joe's Garage, Inc., purchased a used vehicle lift, brake tester, and wheel aligning equipment for a lump-sum price of $16,000 from a bankrupt competitor. Appraised values were as follows: vehicle lift, $20,000; brake tester, $4,000; and wheel aligner, $6,000.Required:What cost should be recorded for the wheel aligner?
What will be an ideal response?
Cost of wheel aligner =
[$6,000 / ($20,000 + $4,000 + $6,000)] × $16,000 = $3,200
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