On December 1,2017,Xeon Company Bought Land and an Accompanying Warehouse

question 60

Multiple Choice

On December 1,2017,Xeon Company bought land and an accompanying warehouse from Yen Company for $800,000.The fair market values of the land and the building at the time of purchase were $700,000 and $300,000,respectively.How much of the purchase price should Xeon Company allocate to the land,and how much should be allocated to the building?

• A)$457,143 and $342,857,respectively
• B)$700,000 and $300,000,respectively
• C)$560,000 and $240,000,respectively
• D)$500,000 and $300,000,respectively

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Definitions:

Quantity

Quantity refers to the amount or number of a material or immaterial item considered as a unit or in plural units.

Quantity Supplied

The total amount of a commodity that producers are willing and able to sell at a given price during a specific time period.

Quantity Demanded

The sum of a product or service that buyers are ready and capable of buying at a certain price point during a given period.

Inverse

The opposite or reverse relationship, where an increase in one variable leads to a decrease in another, and vice versa.