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Question - California Food Group purchased a restaurant building, to open a new location. The restaurant was already equipped with the kitchen equipment and dining areas, and with some modification would be perfect for the new California Foods design. The company paid $450,000 for the equipment, building and surrounding land and parking lot. The purchase was appraised as follows:
Building $420,000
Land $60,000
Kitchen equipment and dining area furnishings $90,000
Parking lot $30,000
Total appraised value $600,000
Required - What amount should the building be recorded for on California Food Group's books?
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