Owosekun Ltd$.$ provides engineering consulting services to a wide variety of

clients. Based on its business model, the company needs to continually refresh

the equipment it uses to keep up with technology changes. On June $1$st$,2023,$

the company was able to get a great deal on two pieces of equipment and

supplies from a smaller engineering firm that is going out of business. The

following are the details of the deal:

Fair Value

Equipment A $$67,200$

Equipment B $$45,600$

Supplies $$4,800$

Ivanova Consulting paid $$97,000$ cash for all three items, plus the seller was

able to transfer the remaining insurance coverage on both pieces of equipment

$($good for the next $7$ months$)$ as it was already paid for, and the provider would

not issue a refund to the seller. This is valued at $$2,400.$

Instructions

Using the relative fair value approach $($round to the nearest whole number$),$

record the journal entry to account for this purchase transaction. $(10$ marks$)$