Raco Inc Purchased Two Used Machines Together to Get a Lower

Essay

Raco Inc. purchased two used machines together to get a lower total cash price of $90,000. The machines were different, although of the same general type. They were designated as Machines A and B. New machines of the same type could be purchased as follows: Machine A, $25,000; Machine B, $75,000. Prepare the journal entry to record the purchase and show your computations.