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Samtech manufacturing purchased land and building for $6 million.In addition to the purchase following expenditures were made inconnection with the purchase of the land and the building:
Title insurance $27000
Legal fees. $5500
Pro-rated property taxes after the acquisition. $47000
State transfer fees $5100
An independent appraisal estimated the fair values of the landand building if purchased separately at 3.9 million and 2.6 millionrespectively. Shortly after accusation Centex spent 93,000 toconstruct a parking lot and $51,000 for landscaping.
Determine the initial valuation of each asset assuming thatimmediately after acquisitions Samtech demolished the building.demolition costs were $360,000 and a salvaged materials were soldfor $6500 in addition Samtech spend $90,000 clearing and gradingthe land in preparation for the construction of new building.
What is the initial valuation for land, building and landimprovements?

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Lelia Lubowitz
Lelia LubowitzLv2
29 Sep 2019

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