Question
Christopher Corporation has acquired a property that included both land and equipment for $500,000. The corporation purchased the assets with a note payable. The corporation
Christopher Corporation has acquired a property that included both land and equipment for $500,000. The corporation purchased the assets with a note payable. The corporation hired an appraiser who has determined that the market value of the land is $300,000 and the market value of the equipment is $550,000. What is the journal entry for the lumpsum purchase? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A.
Land | 175,000 | |
Building | 325,000 | |
Cash | 500,000 |
B.
Land | 325,000 | |
Building | 175,000 | |
Cash | 500,000 |
C.
Land | 175,000 | |
Equipment | 325,000 | |
Notes Payable | 500,000 |
D.
Land | 325,000 | |
Equipment | 175,000 | |
Notes Payable | 500,000 |
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