Advanced Automotive pays $310,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $68,000, the building's current market value is $238,000, and the equipment's current market value is $34,000. Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Begin by preparing a schedule allocating the purchase price of $310,000. (Do not enter the % sign within the input fields of the Percentage of Total Market column.) Market (Sales) Percentage of Total Cost of Each Value Market Value Asset Asset Land Building Equipment Total 100 % % %
Advanced Automotive pays $310,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $68,000, the building's current market value is $238,000, and the equipment's current market value is $34,000. Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price. Begin by preparing a schedule allocating the purchase price of $310,000. (Do not enter the % sign within the input fields of the Percentage of Total Market column.) Market (Sales) Percentage of Total Cost of Each Value Market Value Asset Asset Land Building Equipment Total 100 % % %
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Transcribed Image Text:Advanced Automotive pays $310,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $68,000, the building's
current market value is $238,000, and the equipment's current market value is $34,000. Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets
purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price.
Prepare a schedule allocating the purchase price of $310,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum
purchase of the three assets. The business signs a note payable for the purchase price.
Begin by preparing a schedule allocating the purchase price of $310,000. (Do not enter the % sign within the input fields of the Percentage of Total Market column.)
Market (Sales) Percentage of Total
Value
Market Value
Cost of Each
Asset
Asset
Land
Building
Equipment
Total
100
...
%
%
%
%
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