On May 1, 2022 Nankai Ltd. purchased a factory, including land, a building, and equipment for $7,200,000. Of this amount, 30% was paid in cash, 70% by signing a 10 year, 3%, note payable. In addition to the purchase cost, Nankai paid 5% of the cost of the factory for the taxes, $60,000 in legal fees, $38,000 for overhauling the equipment, and $168,000 for renovating the building. These costs were paid in cash. The land, building, and equipment were appraised as 30%, 60% and 10% of the purchase price. Required: