Question
The Align Company purchased for cash the below assets from the Misplaced Corporation at an auction. Cost of Asset Purchase Appraised Asset When New Price
The Align Company purchased for cash the below assets from the Misplaced Corporation at an auction.
| Cost of Asset | Purchase | Appraised | |
| Asset | When New | Price | Value |
| Land | $80,000 | $80,000 | $100,000 |
| Building | $160,000 | $220,000 | $240,000 |
| Machinery | $100,000 | $100,000 | $140,000 |
| Total | $340,000 | $400,000 | $480,000 |
Requirements:
- Allocate the total purchase price among the three assets
- Prepare the journal entry to record the purchase
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Accounting Advanced
Authors: Claudia Bienias Gilbertson
9th Edition
0538447559, 9780538447553
