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Question - Rails Company paid $2,500,000 for the net assets of Hawk Corporation and Hawk was then dissolved. Hawk had no liabilities. The fair values of Hawk's assets were $3,750,000. Hawk's only non-current assets were land and buildings with book values of $100,000 and $520,000, respectively, and fair values of $180,000 and $730,000, respectively. At what value will the buildings be recorded by Rails Company?
A. $730,000
B. $520,000
C. $210,000
D. $0
In what journal would the following transactions be recorded? (Assume that a two-column sales journal and a single-column purchases journal are used.)
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