Chico Company paid $550,000 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, $135,000; Building, $450,000, and Land, $105,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to four decimal places: ie .054231 = 5.42%.)

A. $135,000
B. $158,333
C. $107,635
D. $52,500


Answer: C

Business

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