Greer Manufacturing purchases property that includes land, buildings and equipment for $$8,250,000.$ In addition,

the company pays $$270,000$ in legal fees, $$330,000$ in commissions, and $$150,000$ in appraisal fees. The land is

estimated at $25\%,$ the bulldings are at $40\%,$ and the equipment at $35\%$ of the property value.

Required:

a$.$ Determine the total acquisition cost of this "basket purchase".

b$.$ Allocate the total acquisition cost to the individual assets acquired.

c$.$ Prepare the journal entry to record the purchase assuming that the company pard $50\%$ of the amounts using cash

and signed a note $($due in five years$)$ for the remainder.

Complete this question by entering your answers in the tabs below.

Determine the total acquisition cost of this "basket purchase".

Acquisition cost