Schwartzkopf Co. purchased for $2,200,000 property
that included both land and a building to be used in
operations. The seller’s book value was $300,000 for the
land and $900,000 for the building. By appraisal, the fair
value was estimated to be $500,000 for the land and
$2,000,000 for the building. At what amount should
Schwartzkopf report the land and the building at the
end of the year?