Compute amount to be recorded on the books for each of asset

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Reference no: EM131195924

Allocating costs for a basket purchase
Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows:

Land	$160,000
Building	400,000
Equipment	240,000
Total	$800,000

Required

a. Compute the amount to be recorded on the books for each of the assets.

1369_Book of assets.png

b. Record the purchase in a horizontal statements model like the following one.

Rev. 2 Exp. 5 Net Inc.		Cash Flow

Reference no: EM131195924

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