On January 1, 2016, Coopers Industries bought a parcel of land for use in its operations by paying the seller $400,000 in cash and signing a five year, 12% note payable in the amount of $100,000. In the connection with purchase of the land, Coopers incurred legal fees of $19,000, a real estate agent sales commission of $25,000, surveying fees of $1,000, and an appraisal fee of $5,000.

Required:

Part a. Compute the total acquisition cost of the parcel of land.

Part b. Prepare the journal entry to record the purchase of the parcel of the land.

Please show all the work

11 n January 1, 2016, Coopers Industries bought a parcel of land for use in its operations by paying the seller $400,000 in cash and signing a five year, 12% note payable in the amount of $100,000. In connection with the purchase of the land, Coopers incurred legal fees of $19,000, a real estate agent sales commission of $25,000, surveying fees of $1,000, and an appraisal fee of $5,000. Required: Part a. Compute the total acquisition cost of the parcel of land. Part b. Prepare the journal entry to record the purchase of the parcel of the land