Office Plus Company Bought an Office Building for $9,000,000 So

question 89

Essay

Office Plus Company bought an office building for $9,000,000 so it could consolidate its entire senior management staff in one location. An independent appraiser valued these items individually as follows:
$$\begin{array} { | l | r | } \hline \text { LPE category } & \text { Appraised value } \\\hline \text { Land } & \$ 3,000,000 \\\hline \text { Building } & 4,000,000 \\\hline \text { Computer network system } & 1,200,000 \\\hline \text { Elevator system } & 1,800,000 \\\hline \text { Landscaping and site improvements } & 800,000 \\\hline \text { Total } & \$ 10,800,000 \\\hline\end{array}$$ Prior to completing the purchase, Office Plus' management decided that it will remove the computer network system and replace it with fiber-optic cables and related technologies.
Required:
Allocate the purchase price among the assets acquired.

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Definitions:

Living Conditions

The social and environmental factors that contribute to the quality and manner of a person's daily life and wellbeing.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, often resulting from demanding circumstances.

Parasites

Organisms that live on or inside another organism (the host) and benefit at the host's expense, often causing harm.

Antigens

Substances, usually proteins, on the surface of bacteria, viruses, and other foreign substances, that trigger an immune response in the body.