Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,470,000. Harding paid $735,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $777,000; Building, $2,310,000 and Equipment, $1,533,000. (Round percentages to two decimal places: ie .054 = 5%).

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

Multiple Choice

• Land	777,000
  Building	2,310,000
  Equipment	1,533,000
  Cash		4,620,000

• Land	777,000
  Building	2,310,000
  Equipment	1,533,000
  Cash		735,000
  Notes payable		3,885,000

• Land	777,000
  Building	2,310,000
  Equipment	1,533,000
  Cash		1,735,000
  Notes payable		735,000
  Gain on purchase of long-term assets		2,150,000

• Land	419,900
  Building	1,235,000
  Equipment	815,100
  Cash		735,000
  Notes payable		1,735,000