Journalize the lump-sum purchase of the assets

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Problem -

Learning Objective - Measure and record the cost of individual assets in a lump-sum purchase of assets.

Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $124,000, the building's current market value is $31,000, and the equipment's current market value is $155,000. Schedule allocating the purchase price of $280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price.

Reference no: EM132454015

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