10.16

10.16 Kelly manufacturing company bought a parcel of land, buildings and machinery on 21 August 2014 for a cash price excluding GST of $800,000. Fair values of the assets on the acquisition date were appraised as: Land $250,000 Buildings 400,000 Machine 200,000 $850,000 Required: Calculate the amount of cost that should be assigned to each of the assets and prepare a general journal entry to record the purchase. 10.17 A delivery van was purchased on 1 January 2013 for $117.000 (GST inclusive). It is