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On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate plus $30,700 cash in closing costs. The real
On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate plus $30,700 cash in closing costs. The real estate included land appraised at $176,030; land improvements appraised at $84,980; and a building appraised at $345,990.
(a) | (b) | (c) | |
PPE Asset | Appraised Values | Ratio of Individual Appraised Value to Total Appraised Value (a) Total Appraised Value | Cost Allocation (b) Total Actual Cost |
Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
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