Remove asset from the books.

Purchases of Plant Assets $($Acquisition$)$

Plant assets are recorded in an asset account when purchased, such as

Assets are sometimes purchased as a group in a single transaction for a lump$-$sum price.

The cost of the assets acquired is $$ based on their relative market $($or appraised$)$ values.

In$-$class Exercise #$3.$ On Nov $18,$ CarBuyer obtained a $$90,000$ note payable to acquire a group of items consisting of land appraised at $$30,000,$ land improvements appraised at $$10,000,$ and a building appraised at $$60,000.$ The $$90,000$ cost will be allocated on the basis of appraised values.

a$.$ What is the cost that should be assigned to each of the assets?

$\backslash$table$[[$Asset$,\backslash$table$[[$Appraisal$],[$Amount$]],\%$ of Appraisal,$\backslash$table$[[$Total Purchase$],[$Cost$]],\backslash$table$[[$Recorded Value of$],[$Asset$]]],[$Land$,,,,],[$Land Improvements,,,,$],[$Buildings$,,,,],[$Total$,,,,]]$

b$.$ If CarBuyer borrowed the $$90,000$ to purchase the assets, what is the journal entry to record the purchase?

$\backslash$table$[[,,,],[,,,],[,,,],[,]]$