25. 5 points A company purchases property that includes land, buildings and equi

Question

25. 5 points A company purchases property that includes land, buildings and equipment for $5.1 million. The co pays $172,000 in legal fees, $229,000 in co estimated at 23%, the buildings are at 44%, and the equipment at 33% of the property value mpany ns, and $109,000 in appraisal fees. The land is Required: a. Detemine the oalacquisition cost of thie basket purchase (Enter your answer in whole dollars and not in millions.) b. Allocate the total acquisition cost to the individual assets acquired (Enter your answers in whole dollars and not in millions.) Land e. Prepare the journal entry to record the purchase assuming that the company paid 55% of the amounts using cash and signed a note (due in five years) for the remainder. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars and not in millions.) Type here to search

Explanation / Answer

Solution:-

a.

Explanation:-

5,100,000 + 172,000 + 229,000 + 109,000 = $ 5,610,000

b.

Explanation:-

Land = $ 5,610,000 * 23% = $ 1,290,300

Building = $ 5,610,000 * 44% = $ 2,468,400

Equipment = $ 5,610,000 * 33% = $ 1,851,300

c.

Please Rate or comment if you have any doubt regarding this solution.

Acquisition cost 5,610,000

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