Chenega Manufacturing purchased land and a building for $4 million. In addition to the purchase price, Chenega made the following expenditures in connection with the purchase of the land and building:

Title insurance	$16,000
Legal fees for drawing the contract	5,000
Property taxes	36,000
State transfer fees	4,000

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. Property taxes included $6,000 of delinquent taxes.

Question

Journal entries for the assets Chenega acquired in these transactions would include:

		a debit to Land for $3,018,750
		a debit to Buildings for $0
		a debit to Land for $4,031,000
		a debit to Buildings for $1,007,750