Purchase of Multiple Assets for a Single Sum On April 1, 2018, Cajun Company paid $190,000 in cash to purchase land, a building, and equipment. The appraised fair market values of the assets were as follows: land, $71,300; building, $110,400; and equipment, $48,300. The company incurred legal fees of $7,000 to determine that it would have a clear title to the land. Before the facilities could be used, Cajun had to spend $4,000 to grade and landscape the land, $4,900 to put the equipment in working order, and $16,000 to renovate the building. The equipment was then estimated to have a useful life of seven years with no salvage value, and the building would have a useful life of 20 years with a net salvage value of $10,000. Both the equipment and the building are to be depreciated on a straight-line basis. The company is on a calendar-year reporting basis. Required: 1. Allocate the single purchase price to the individual assets acquired Cost of land Cost of building Cost of equipment $ Feedback Check My Work Incorrect 2. Prepare the journal entry to acquire the land, building, and equipment. If an amount box does not require an entry, leave it blank. Land Building Equipment Cash 190,000 3. Prepare the journal entry to record the title search, landscape, put the equipment in working order, and renovate the building. If an amount box does not require an entry, leave it blank. Land Building Equipment Cash Feedback Check My Work Partially correct 4. Prepare the journal entries on December 31, 2018, to record the depreciation on the building and the equipment. If an amount box does not require an entry, leave it blank Dec. 31, 2018Depreciation Expense Accumulated Depreciation, Building Accumulated Depreciation, Equipment