Author Question: Under a perpetual inventory system, the amount of each type of merchandise on hand is available in ... (Read 33 times)

Beheh · **on:** Jul 5, 2018

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the
a. customer's ledger
b. creditor's ledger
c. inventory ledger
d. purchase ledger

Question 2

On January 8, 2011, Safari LLP bought three buildings at a total cost of 60,000,000 by making a cash down payment of 10,000,000 and signing a 3-year note with 5 interest for the remainder.

One of the buildings is in Havana, one is in Cancun, and the third is in Miami. The fair market value of the buildings, if they had been purchased separately, would have been 15,000,000, 36,000,000, and 24,000,000 respectively.
Required:
Use the relative fair market value method to determine how much of the 60,000,000 purchase price should be used for each of the three separate buildings. Write your answers on the lines provided and show your work in the space provided below each line.
___________________ ___ should be used for the cost of the building in Havana.
___________________ ___ should be used for the cost of the building in Cancun.
___________________ ___ should be used for the cost of the building in Miami.

Fill in the blanks with correct word

asware1 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

c

Answer to Question 2

The total fair market value of the buildings if they had been purchased separately is: 15,000,000 + 36,000,000 + 24,000,000 = 75,000,000.
Havana: (15,000,000/75,000,000) x 60,000,000 = 12,000,000
Cancun: (36,000,000/75,000,000) x 60,000,000 = 28,800,000
Miami: (24,000,000/75,000,000) x 60,000,000 = 19,200,000