On January 1, 2018, Richard Co. bought a parcel of land for use in its operations by paying the seller $320,000 in cash and signing a five year, 12% note payable in the amount of $80,000. In connection with the purchase of the land, Coopers incurred legal fees of $15,200, a real estate agent sales commission of $20,000, surveying fees of $800, and an appraisal fee of $4,000.

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.