ezto.mh education.com hm.tpx?-0.4053106512sn VSCO Cr C Your stream on S.vsco-C Y
ID: 2564438 • Letter: E
Question
ezto.mh education.com hm.tpx?-0.4053106512sn VSCO Cr C Your stream on S.vsco-C Your stream on So... Instagram s Microeot Offio Home C2 YouTube H Notfiki A company purchases property that includes land, buildings and equipment for $4.5 million. The company pays $187,000 in legal fees, $220,000 in commissions, and $103,000 in appraisal fees. The land is estimated at 26%, the buildings are at 38%, and the equipment at 36% of the property value. Required a. Determine the total acquisition cost of this "basket purchase." (Enter your answer in whole dollans and not in millions.) ion cost b. Allocate the total acquisition cost to the individual assets acquired. (Enter your answers in whole dollars and not in millions.) Land Buildings Equipment the journal entry to record the purchase assuming that the company paid 45% of the amounts using cash and signed a note (due in five years) for the remainder. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars and not in millions.) Journal entry worksheet MacBooExplanation / Answer
1)total acquisition cost =Purchase cost+legal fees+commission+appraisal fees
= 4,500,000+187,000+220,000+103,000
= 5,010,000
2)Land:5,010,000*.26= 1,302,600
Building :5,010,000*.38= 1,903,800
Equipment: 5,010,000*.36= 1,803,600
3)
Date Account debit credit Land 1,302,600 Building 1,903,800 Equipment 1,803,600 cash [5,010,000*.45] 2,254,500 Note payable 2,755,500 [Asset acquired]Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.