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Lump-Sum (Basket) Purchase Cost Allocation Calculator by Relative Fair Value

What do these figures come to once the work is shown?

Allocate one purchase price, plus capitalized costs, across up to four assets in proportion to their fair values.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Asset 1 allocated cost
$675,000
Total cost times the asset share of total fair value
Asset 2 allocated cost
$825,000
Asset 3 allocated cost
$300,000
Drawn to one scale
Asset 1 allocated cost$675,000
Asset 2 allocated cost$825,000
Asset 3 allocated cost$300,000
Asset 4 allocated cost$0
Total cost allocated$1,800,000
Total fair value$2,400,000
All results
MeasureResult
Asset 1 allocated cost$675,000
Asset 2 allocated cost$825,000
Asset 3 allocated cost$300,000
Asset 4 allocated cost$0
Total cost allocated$1,800,000
Total fair value$2,400,000
Cost as percent of fair value75.00%
How this was worked out
Work shownrecomputed as you type
Allocated cost = (price + capitalized costs) x asset fair value / total fair value

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Allocated cost = (price + capitalized costs) x asset fair value / total fair value

How it works

When several assets are bought for one price, such as land, a building and equipment, the cost is split among them in proportion to their fair values. The split matters because land is not depreciated and each depreciable asset has its own life.

Fair values should come from an appraisal or other support. If the price is below total fair value, each asset is recorded below its fair value. For a business combination the rules differ, as acquired assets are measured at fair value with goodwill or a gain as the balancing figure.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Does this apply to a business purchase?

No. Business combinations use fair value measurement and goodwill. This is for asset acquisitions.

Which costs are added?

Costs directly attributable to the acquisition, such as legal and title fees.

What if I have no appraisal?

Use the best available evidence and document it. The allocation will be only as reliable as the values.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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