What is the total amount allocated to the equipment in the price allocation arrangement between CS and WB?

To determine the total amount allocated to the equipment in the price allocation arrangement between CS and WB, it's important to understand how assets are valued during transactions, especially in scenarios involving exchanges or purchases where fair values differ from book values.

In this case, if the total consideration agreed upon for the equipment is, for example, a sale price or a value assigned during negotiation, that amount needs to be examined in conjunction with the relative fair values of all items involved. The equipment's allocation is typically based on its fair value relative to the total value of all items exchanged.

If the correct answer is 952,381, the allocation of this amount likely reflects a fair value set through proper appraisal or negotiation within the context of the transaction. This figure would take into account the market conditions or specific attributes of the equipment that make it valuable.

When other choices, such as 600,000, 1,000,000, and 47,619, are considered, they might not represent the fair value accurately or they may reflect some other components of the deal that do not pertain directly to the equipment allocation. By using the fair value concept, the total amount assigned to the equipment ensures that it is accurately represented on the financial statements, which is