In the calculation of acquisition costs in a group purchase, which asset's FMV is listed last?

In the context of group purchases, the fair market value (FMV) of the assets is an essential factor when determining the acquisition costs allocated to each asset. Generally, the asset that is often valued last in such calculations is the one that is considered to have the least significance or is typically lower in value within the group, or sometimes, the asset that is most attractive or useful in terms of functionality or modernization is valued lower despite it being a necessary part of the acquisition.

The copier, given that it is a more specialized piece of office equipment typically used for producing multiple copies at a time, may be viewed as having less general utility compared to a multifunctional computer that can perform many tasks beyond just copying, and could be valued lower in an acquisition scenario of this nature.

Allocating the FMV last can imply that the broader application of the computer’s utility could overshadow the specific purpose of the copier. By understanding the rationale behind the order of valuation in the group purchase, students can gain deeper insights into asset valuation and the strategic thinking involved in such decisions in accounting practices.