Advanced Automotive pays $270,000 for a group purchase of land, building, and equipment. At the time ofacquisition, the land has a current market value of $30,000, the building's current market value is $210,000,and the equipment's current market value is $60,000. Prepare a schedule allocating the purchase price of$270,000 to each of the individual assets purchased based on their relative market values, then journalize thelump-sum purchase of the three assets. The business signs a note payable for the purchase price.Prepare a schedule allocating the purchase price of $270,000 to each of the individual assets purchasedbased on their relative market values, then journalize the lump-sum purchase of the three assets. Thebusiness signs a note payable for the purchase price.Begin by preparing a schedule allocating the purchase price of $270,000. (Do not enter the % sign within theinput fields of the Percentage of Total Market column.)AssetLandBuildingEquipmentTotalMarket (Sales) Percentage of Total Cost of EachValueMarket ValueAsset100%%%%

The question is related to Property, Plant and Equipment. The details of lump sum group purchase is…

Advanced Automotive pays $270,000 for a group purchase of la acquisition, the land has a current market value of $30,000, the and the equipment's current market value is $60,000. Prepare a $270,000 to each of the individual assets purchased based on t ump-sum purchase of the three assets. The business signs an Prepare a schedule allocating the purchase price of $270,000 to based on their relative market values, then journalize the lump-s business signs a note payable for the purchase price. Begin by preparing a schedule allocating the purchase price of nput fields of the Percentage of Total Market column.)

Advanced Automotive pays $270,000 for a group purchase of la acquisition, the land has a current market value of $30,000, the and the equipment's current market value is $60,000. Prepare a $270,000 to each of the individual assets purchased based on t ump-sum purchase of the three assets. The business signs an Prepare a schedule allocating the purchase price of $270,000 to based on their relative market values, then journalize the lump-s business signs a note payable for the purchase price. Begin by preparing a schedule allocating the purchase price of nput fields of the Percentage of Total Market column.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 1SEB

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