If someone purchased two buildings on 4 acres of land and the lump purchase price was 900,000.According to independent appraisals the fair market values were 450,000 (building A) and 250,000 (building B) for the building and 300,000 for the land.
Determine the initial valuation of the building and the land??

Does anybody know how to determine the initial valuation of the building and the land?

Please at least try to give an answer first, we don't do homework for you on this site.

Please at least try to give an answer first, we don't do homework for you on this site.

Market Values
land 300,000
(building A) 450,000
(building B) 250,000

total: 1,000,000

So now I divide each item's previously valued price by the total of them all combined to get the percentage.
for example: 300,000/1000000=30% Then, I multiplied 30 % times 900,000=270,000
What do u think?

Given the information you have available yes that think that is a good method to estimate.

Given the information you have available yes that think that is a good method to estimate.

I feel good :P lol... thanks
So can u give me more clues about the other one (journal entry)