Pattys Auto Body bought a shop from an existing business on June 15 with cash. The purchase includes the land, building and all of the equipment inside. The total price of the purchase was $1,500,000. The fair market value for the land was $800,000. The fair market value for the equipment was $400,000. The fair market value for the building was $600,000. a. Calculate the cost allocation for this basket purchase based on the fair market values given.

b. Record the journal entry for this purchase.