Historical cost practice Quick Check 1 (Ch 8) This is a bit tricky. The price we paid is less than the market value and there is land, building and…

Historical cost practice Quick Check 1 (Ch 8)

This is a bit tricky. The price we paid is less than the market value and there is land, building and equipment here. Hmmm…So how do we follow the rule of valuing each of these at historical cost???

Benoit purchased a tract of land, a small office building, and some equipment for $1,800,000. The appraised value of the land was $1,144,000, the building $660,000, and the equipment $396,000. What is the cost of the land? Please show your work! You can check your answer in the text on p 462.