Required information [The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,755,000. Harding paid $840,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $888,000; Building, $2,640,000 and Equipment, $1,752,000. (Round percentages to two decimal places: ie .054 = 5%).

What journal entry would be used to record the purchase of the above assets?

Multiple Choice

Land 888,000

Building 2,640,000

Equipment 1,752,000

Cash 5,280,000

Land 888,000

Building 2,640,000

Equipment 1,752,000

Cash 840,000

Notes payable 4,440,000

Land 888,000

Building 2,640,000

Equipment 1,752,000

Cash 1,915,000

Notes payable 840,000

Gain on purchase of long-term assets 2,525,000

Land 468,350

Building 1,377,500

Equipment 909,150

Cash 840,000

Notes payable 1,915,000