Problem #4:

Mega Corp purchased assets on a lump-sum basis. Mega paid $2,000,000 for land, building, machinery and furrniture. The following are values:

FMV Book Value

Land $500,000 $400,000

Building $600,000 $300,000

Machinery $400,000 $300,000

Furniture $700,000 $550,000

REQUIRED: Show the calculation and entry to record Megas lump-sum purchase