Answer:
b. $106,600.
Explanation:
The computation of the allocation amount of building is shown below:
= Paying cost + closing cost × (appraisal value of building ÷ total appraisal value)
= $250,000 + $10,000 × ($110,700 ÷ $270,000)
= $260,000 × ($110,700 ÷ $270,000)
= $106,600
The total appraisal value would be
= Appraisal value of building + appraisal value of land + appraisal value of paddle boats
= 110,700 + $54,000 + $105,300
= $270,000
