Finley Company is looking for a new office location and sees a building with a fair value of $720,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $112,000. Finley offers to buy both the building and the equipment for $770,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round Intermediate calculations.) Building Equipment Total
Finley Company is looking for a new office location and sees a building with a fair value of $720,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $112,000. Finley offers to buy both the building and the equipment for $770,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round Intermediate calculations.) Building Equipment Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
![Finley Company is looking for a new office location and sees a building with a fair value of $720,000. Finley also notices that much of
the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be
$112,000. Finley offers to buy both the building and the equipment for $770,000, and the offer is accepted.
Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round Intermediate
calculations.)
Building
Equipment
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6caf6b76-4e12-456b-96bf-9efa3ab5fda9%2Ff524828d-5e98-4eb7-b541-6aeecc5db014%2Faeq340b4_processed.png&w=3840&q=75)
Transcribed Image Text:Finley Company is looking for a new office location and sees a building with a fair value of $720,000. Finley also notices that much of
the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be
$112,000. Finley offers to buy both the building and the equipment for $770,000, and the offer is accepted.
Determine the amounts Finley should record in the separate accounts for building and equipment. (Do not round Intermediate
calculations.)
Building
Equipment
Total
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