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Deadwood Properties bought three lots in a subdivision for alump-sum price. An independent appraiser valued the lots asfollows: Lot Appraised Value Lot 1 $220,500 Lot
Deadwood Properties bought three lots in a subdivision for alump-sum price. An independent appraiser valued the lots asfollows:
Lot Appraised Value
Lot 1 $220,500
Lot 2 $122,500
Lot 3 $147,000
Deadwood paid $290,000 in cash. Record the purchase in thejournal, identifying eachlot's cost in a separate Land account. Round decimals to twoplaces, and use the computed percentages throughout. (Record a single compound journal entry. Record debitsfirst, then credits. Select the explanation on the last line of the journal entrytable.)
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