Respuesta :
The value of land using allocation method is $100000
What is land?
Land is the solid part of surface of the earth. here land means a particular property or piece of earth surface assigned or owned by a person. a land is a fixed asset and is tangible, it does not move from one place to another place and depreciates with time.
What is allocation method?
An appraisal method known as the Allocation Method for Valuing Land and Sites entails obtaining data on comparable site values of recent sales and establishing a ratio between the land/site value and overall value. The property that is to be valued is then given this ratio. This approach makes the assumption that similar properties in comparable settings will have a land-to-value ratio that is either identical or nearly identical.
Ratio of allocation or land value to building is 1:3
Value of property- $300000
So, 300000/3 = $100000
Hence, $100000 is lands value using allocation method
Supportive answer
To know more about allocation method here https://brainly.com/question/2664044
#SPJ2
