Question

Pinewood Company purchased two buildings on four acres. The lump sum purchase price was $1,400,000. According to independent appraisals, the fair values were $75,000.

a) True
b) False

Answer 1

The statement is False.

Step-by-step explanation:

The question is asking whether the statement is true or false: Pinewood Company purchased two buildings on four acres for a lump sum purchase price of $1,400,000. According to independent appraisals, the fair values were $75,000. To determine if the statement is true or false, we need to compare the purchase price with the fair values. Since the purchase price is significantly higher than the fair values, the statement is False.