a-company-buys-land-and-machinery-for-900000-the-lands-fair-market-value-is-3000

Question

A company buys land and machinery for $$900,000. The land's fair market value is 300$$,000 and the machinery's fair market value is $600,000. Using the relative sales value method, how much of the purchase price is allocated to the machinery?

Accepted Answer

$600,000

Answer

$500,000

Answer

$400,000

Answer

$300,000

A company buys land and machinery for \$900,000. The land's fair market value is \$300,000 and the machinery's fair market value is \$600,000. Using the relative sales value method, how much of the purchase price is allocated to the machinery?