Hawkeye Corporation has acquired a property that included both land and a building for $570,000
The corporation hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $430,000. At what amount should the corporation record the cost of land? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $444,600
B) $123,000
C) $285,000
D) $233,700
D .Land percentage of total value = 300,000 / (300,000 + 430,000 ) = 0.41
Cost of land = Lump-sum purchase price / Land percentage of total value = $570,000 x 0.41 = $233,700
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