Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above assets? Multiple Choice Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 4,620,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 735,000 Notes payable 3,885,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 1,735,000 Notes payable 735,000 Gain on purchase of long-term assets 2,150,000 Land 419,900 Building 1,235,000 Equipment 815,100 Cash 735,000 Notes payable 1,735,000
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%). What journal entry would be used to record the purchase of the above assets? Multiple Choice Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 4,620,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 735,000 Notes payable 3,885,000 Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 1,735,000 Notes payable 735,000 Gain on purchase of long-term assets 2,150,000 Land 419,900 Building 1,235,000 Equipment 815,100 Cash 735,000 Notes payable 1,735,000
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 41P
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Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%).
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Multiple Choice
-
Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 4,620,000 -
Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 735,000 Notes payable 3,885,000 -
Land 777,000 Building 2,310,000 Equipment 1,533,000 Cash 1,735,000 Notes payable 735,000 Gain on purchase of long-term assets 2,150,000 -
Land 419,900 Building 1,235,000 Equipment 815,100 Cash 735,000 Notes payable 1,735,000
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