Lump-Sum Purchase /Group Purchases - Exercise Assume a company purchases land, machinery and a building for RO4,000,000 cash. The land has a market value of RO1,350,000, machinery of RO675,000 and the building for RO2,475,000 for a total value of RORO4,500,000. Required: Calculate the amount at which each of the above components shall be recognized on purchase date and record the purchase transaction and record journal entries.