ACC - Peach Management owns several apartment complexes
Question # 00016959
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Updated on: 06/05/2014 10:45 PM Due on: 06/06/2014
Peach Management owns several apartment complexes throughout the city of Atlanta. It just acquired a new piece of property that has been appraised at $775,000. The assets and their values are listed as follows.
Asset Value
Building $475,000
Furnishings 50,000
Land 150,000
Land improvements 100,000
Total $775,000
Peach Management purchased the property in a foreclosure for $600,000. Create a worksheet (file name BASKET) that will allocate the purchase price among the assets acquired.
Review the Model-Building Problem Checklist on page 154 to ensure that your worksheet is complete. Print the worksheet when done. Check figure: Allocated cost of the building, $367,742.
Use the following purchase price to test your model: $700,000.
Asset Value
Building $475,000
Furnishings 50,000
Land 150,000
Land improvements 100,000
Total $775,000
Peach Management purchased the property in a foreclosure for $600,000. Create a worksheet (file name BASKET) that will allocate the purchase price among the assets acquired.
Review the Model-Building Problem Checklist on page 154 to ensure that your worksheet is complete. Print the worksheet when done. Check figure: Allocated cost of the building, $367,742.
Use the following purchase price to test your model: $700,000.
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Rating:
/5
Solution: ACC - Peach Management Solution