A Company Purchased Land with a Building for a Lump-Sum

Essay

A company purchased land with a building for a lump-sum cost of $2,570,000 ($500,000 paid in cash and the balance on a long-term note).It was estimated that the land and building had market values of $600,000 and $2,400,000,respectively.
Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition.