Andy Industries Is Making a Basket Purchase of 4 Items

question 64

Essay

Andy Industries is making a basket purchase of 4 items for $550,000 for cash. The current market values of the items are as follows:
Equipment $133,000
Furniture: $147,000
Trucks: $127,000
Fixtures: $168,000
Calculate to the nearest dollar the amount at which Andy Industries should value each item and write the journal entry for this basket purchase on April 14, 2011.
Equipment: $__________
Furniture: $__________
Trucks: $__________
Fixtures: $__________

---

Definitions:

Straight Bond Value

The value of a bond that pays fixed interest payments and does not have any additional features such as convertibility or callable options.

Conversion Value

The worth of a convertible security if it is converted into a different asset, usually common stock, at the current market price.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.

Common Stock

Equity ownership in a corporation, with voting rights and potential for dividends, representing a claim on part of the company’s earnings and assets.