Allocate costs to assets acquired in a lump-sum purchase; dispose of a plant asset
Response to the following problem:
Greenview Manufacturing bought three used machines in a $175,000 lump-sum purchase. An independent appraiser valued the machines as shown:
Machine No. Appraised Value
1 $68,000
2 $54,000
3 $88,000
What is each machine's individual cost? Immediately after making this purchase, Greenview sold machine 3 for its appraised value. What is the result of the sale? (Round decimals to three places when calculating proportions, and use your computed percentages throughout.)