Lump-Sum Purchase of Assets and Subsequent Events Dixon Manufacturing purchased, for cash, three large pieces of equipment. Based on recent sales of similar equipment, the fair market values are as follows:

Piece 1 $200,000 Piece 2 $200,000 Piece 3 $440,000 Required 1. What value is assigned to each piece of equipment if the equipment was purchased for

(a) $480,000,

(b) $680,000, and

(c) $800,000?

2. How does the purchase of the equipment affect total assets?

AppendixLO1