Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,565,000. Harding paid $770,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $814,000; Building, $2,420,000 and Equipment, $1,606,000. (Round percentages to two decimal places: ie .054 = 5%).

What journal entry would be used to record the purchase of the above assets?

• Land	814,000
  Building	2,420,000
  Equipment	1,606,000
  Cash		4,840,000

• Land	814,000
  Building	2,420,000
  Equipment	1,606,000
  Cash		770,000
  Notes payable		4,070,000

• Land	814,000
  Building	2,420,000
  Equipment	1,606,000
  Cash		1,795,000
  Notes payable		770,000
  Gain on purchase of long-term assets		2,275,000

• Land	436,050
  Building	1,282,500
  Equipment	846,450
  Cash		770,000
  Notes payable		1,795,000