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Knowledge Check 01 Worthington, Inc

Accounting

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Knowledge Check 01 Worthington, Inc., paid $90,000 to acquire land, land improvements, and a building. The company obtained two appraisals. The land was appraised at $30,000, the land improvements were appraised at $10,000, and the building was appraised at $60,000. The allocation of the cost of the purchase result in cost figures of O $30,000 for the land, 510,000 for the land improvements, and $50,000 to the building. O $20,000 for the land, $10,000 for the land improvements, and $50,000 for the building O $27.000 for the land $9.000 for the land improvements, and $54,000 for the building O $30,000 for the land and $60,000 for the building with no allocation of costs to the land improvements.