On January 8,2011,Safari LLP bought three buildings at a total cost of $60,000,000 by making a cash down payment of $10,000,000 and signing a 3-year note with 5% interest for the remainder.One of the buildings is in Havana,one is in Cancun,and the third is in Miami.The fair market value of the buildings,if they had been purchased separately,would have been $15,000,000,$36,000,000,and $24,000,000 respectively.
Required:
Use the relative fair market value method to determine how much of the $60,000,000 purchase price should be used for each of the three separate buildings.Write your answers on the lines provided and show your work in the space provided below each line.
$______________________ should be used for the cost of the building in Havana.
$______________________ should be used for the cost of the building in Cancun.
$______________________ should be used for the cost of the building in Miami.

Question

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The Answer of On January 8,2011,Safari LLP bought three buildings at a total cost of $60,000,000 by making a cash down payment of $10,000,000 and signing a 3-year note with 5% interest for the remainder.One of the buildings is in Havana,one is in Cancun,and the third is in Miami.The fair market value of the buildings,if they had been purchased separately,would have been $15,000,000,$36,000,000,and $24,000,000 respectively.
Required:
Use the relative fair market value method to determine how much of the $60,000,000 purchase price should be used for each of the three separate buildings.Write your answers on the lines provided and show your work in the space provided below each line.
$______________________ should be used for the cost of the building in Havana.
$______________________ should be used for the cost of the building in Cancun.
$______________________ should be used for the cost of the building in Miami.

On January 8,2011,Safari LLP Bought Three Buildings at a Total