Question $5$

Castle Corp purchased a building, land, and equipment for $$900,000.$ The fair market value of the assets was follows:

Land $$400,000(40\%),$ Building $$500,000(50\%)$ and Equipment $$100,000(10\%)$ with a total FMV of $$1,000,000.$ Castle

paid $$200,000$ in cash and took out a loan for the remainder.

Required

a$.$ Compute the amount to be recorded on the books for each asset.

b$.$ Record the journal entry for the purchase: