On July 1, 2018, Larkin Co. purchased a $400,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2018 as follows:

Demolition of existing building on site $ 75,000 Legal and other fees to close escrow 12,000 Proceeds from sale of demolition scrap 10,000 What would be the balance in the land account as of December 31, 2018?

Multiple Choice

$400,000.

$475,000.

$477,000.

$487,000.

During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $12,000,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below:

	Book Value				Fair Value
Accounts receivable	$	1,800,000			$	1,625,000
Inventories		2,700,000				4,000,000
Property, plant, and equipment		9,000,000				11,625,000
Accounts payable		3,000,000				3,000,000
Bonds payable		4,500,000				4,125,000

Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Watson Company purchased assets of Holmes Ltd. at auction for $1,300,000. An independent appraisal of the fair value of the assets acquired is listed below:

Land	$	214,500
Building		357,500
Equipment		572,000
Inventories		286,000

Required: Prepare the journal entry to record the purchase of the assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)