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9)Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for

9)Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $740,000; Building, $2,200,000 and Equipment, $1,460,000. (Round percentages to two decimal places: ie .054 = 5%). What value will be recorded for the building?

  • $350,000

  • $175,000

  • $1,187,500

  • $2,200,000

10)What journal entry would be used to record the purchase of the above assets?

  • Land 740,000
    Building 2,200,000
    Equipment 1,460,000
    Cash 4,400,000
  • Land 740,000
    Building 2,200,000
    Equipment 1,460,000
    Cash 700,000
    Notes payable 3,700,000
  • Land 740,000
    Building 2,200,000
    Equipment 1,460,000
    Cash 1,675,000
    Notes payable 700,000
    Gain on purchase of long-term assets 2,025,000
  • Land 403,750
    Building 1,187,500
    Equipment 783,750
    Cash 700,000
    Notes payable 1,675,000

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