Knowledge Check $01$

Industrial Metals purchases land, building, and equipment together for $$1\mathrm{.}2$ million. The estimated fair values of the land, buildings, and equipment are $$500,000,$ $$800,000,$ and $$200,000,$ respectively. What amount should be recorded in the separate account for the land?

Multiple Choice

$$400,000$

$$350,000$

$$650,000$

$$500,000$