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a. On 3/31 Year 6 ECU Corporation makes a lump-sum acquisition of LAND / and a BUILDING / for $12,000 CASH. [The LAND is appraised

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a. On 3/31 Year 6 ECU Corporation makes a lump-sum acquisition of LAND / and a BUILDING / for $12,000 CASH. [The LAND is appraised at $6,000 and the BUILDING is appraised at $9,000, a total of $15,000.] Supporting calculation: Ratio of Individual Appraised Values Lump-sum Cost Assets Allocation of Lump-sum Cost LAND: ($6,000/$15,000) X $ = $ assigned to LAND BUILDING: ($9,000/$15,000) X S = S assigned to BUILDING. $ 12,000 lump-sum cost. Phrase Account Category Affect Dr. or Cr. 1st: AL SE RE contra + - Dr Cr 2nd: AL SE RE contra + Dr Cr 3rd: AL SE RE contra + Dr Cr Date Accounts Debit Credit

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