An appraiser values the following. A man wants is willing to bid as high as $300 000 for the lot, however he won the lot at a bid of only $234 000.1. Bulldozer $60 0002. Dump Truck 1 $12 0003. Dump Truck 2 $60004. Crane $120 0005. Pavement roller $72 0006. Land Parcel $36 0007. Construction building $30 0008. Sand pit $24 000Total $360 000Question:1. How can the appraised values be used to calculate cost values for hte new assets?2. Work out he cost values for the newly acquired assets, making sure that the total is equal to the auction price.
Determine what percentage each asset is of the total appraised value. Then use that percentage times the accepted bid amount to determine the cost of each. For example: 1. Bulldozer $60 000. Divide: 60000 (Bulldozer) / 360000 = .166667 times 100 to get the percentage. 16.6667% Then apply that percent to the total bid, 234 000 times .16667 = $39 000 and so on down the line. Add up the 8 results and make sure the total equals $234 000.
