Allocation of Package Purchase Price

Tamock Company purchased a plant from one of its suppliers. The $$960,000$ purchase price included the land, a building, and factory machinery. Tamock also paid

$$5,000$ in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased:

Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamock Company's records.