question archive When assets such as land and buildings are acquired for a lump sum? a
When assets such as land and buildings are acquired for a lump sum? a
Subject:AccountingPrice: Bought3
When assets such as land and buildings are acquired for a lump sum?
a.)they should be recognized as a combined asset
b.)as much as possible should be allocated to land because it is not depreciable
c.)the purchase cost should be allocated between land and buildings on the basis of their respective fair values.
d)as much as possible should be allocated to buildings because they are depreciated
e.) Other: what?
