1. On August 1, 2021, Real Estate Tycoon, Inc. purchased land and a building for $600,000 by signing a long-term note. The fair value of the land is estimated to be $100,000 and the fair value of the building is estimated to be $400,000. The building has an estimated useful life of 20 years and a salvage value of $80,000. The company uses the double-declining balance method to record depreciation. Required: a. Prepare the journal entry to record the purchase of the land and building on Aug. 1, 2021.

1. On August 1,2021 , Real Estate Tycoon, Inc. purchased land and a building for $600,000 by signing a long-term note. The fair value of the land is estimated to be $100,000 and the fair value of the building is estimated to be $400,000. The building has an estimated useful life of 20 years and a salvage value of $80,000. The company uses the double-declining balance method to record depreciation. Required: a. Prepare the journal entry to record the purchase of the land and building on Aug. 1, 2021