Lump-sum purchase of assets
Deadwood Properties bought 3 lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
|
Lot |
Appraisal Value |
|
1 |
70,500 |
|
2 |
235,000 |
|
3 |
164,500 |
Requirement:
Record the purchase in the journal, identifying each lot’s cost in separate Land account.
Round decimals to two places, and use your computed percentages throughout.