Allocation of Package Purchase Price

Tamock Company purchased a plant from one of its suppliers. The $985,000 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:

Property	Assessed Value
Land	$126,000
Building	486,000
Machinery	288,000
Total	$900,000

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

Asset	Allocation of Purchase Price
Land	$Answer
Building	Answer
Machinery	Answer
Total	$Answer