Millburn Company Has Acquired a Property That Included Both Land

question 123

Multiple Choice

Millburn Company has acquired a property that included both land and a building for $530,000.The company hired an appraiser who has determined that the market value of the land is $320,000 and that of the building is $480,000.At what amount should the company record the cost of land? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) $349,800
• B) $128,000
• C) $265,000
• D) $212,000

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Definitions:

Competitive Advantage

The unique attributes or capabilities a company has that enable it to outperform its competitors and generate greater value for its stakeholders.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

Clan Control

A management strategy that focuses on the role of shared norms, values, and beliefs in controlling behavior within organizations.

Market Control

The ability of a company to influence or regulate the market in its favor, often through dominating supply, prices, or competition.