Which of the following are the recommended percentage groupings of the ABC classifications of the dollar volume of products?
A. A items get 25 percent, B items get 15 percent, and C items get 60 percent.
B. A items get 15 percent, B items get 45 percent, and C items get 40 percent.
C. A items get 15 percent, B items get 35 percent, and C items get 50 percent.
D. A items get 20 percent, B items get 30 percent, and C items get 50 percent.
E. A items get 25 percent, B items get 35 percent, and C items get 40 percent.
Answer: C
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Sheridan Manufacturing purchased a new building with the surrounding land. The price paid was $2,400,000, including the commission charged on the sale. An appraisal of the land and building at the time of purchase indicated that the market value of the land was $2,000,000 and the market value of the building was $1,000,000. What amounts would be recorded for the purchase of the two assets?
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