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Problem - Kelly manufacturing company bought a parcel of land, buildings and machinery on 21 August 2014 for a cash price excluding GST of $800,000. Fair values of the assets on the acquisition date were appraised as:
Land $250,000
Buildings 400,000
Machine 200,000
Total $850,000
Required - Calculate the amount of cost that should be assigned to each of the assets and prepare a general journal entry to record the purchase.
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