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On January 15, 20x7. Davis Fashions Co. paid $1,000,000 ($400,000 down payment and a note payable for the balance) to acquire the following assets from a competitor that was going out of business:
WM Land ............................................................... $110,000
Building ............................................................ 600,000
Equipment ......................................................... 260,000
Inventory ............................................................ 80,000
Problem 1: Prepare the journal entry to record the purchase of these assets.
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