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.
You might also like to view...
According to real business cycle (RBC) theory, the main source of the business cycle is
A. changes in the amount of money in the economy. B. waves of optimism and pessimism that cause business investment in capital goods to fluctuate. C. changes in the prices of oil and other resources. D. changes in productivity.
Planning for an expatriate's return should begin while he or she is still on his or her overseas assignment.
Answer the following statement true (T) or false (F)
Identify a true statement about a limited liability company (LLC).
A. A limited liability company can be taxed as a corporation only. B. One of the owners of a limited liability company must be designated as a general partner with unlimited personal financial liability. C. A limited liability company can have no more than 100 stockholders. D. Only one of the owners of a limited liability company can participate in the management of the business. E. A limited liability company can have more than one type of stock (ownership interest) outstanding.
Regarding the challenges facing marketers, the text suggests that
A. continued growth of GDP is one favorable change in our macro-marketing system that a marketing manager can count on. B. marketers should look for ways to improve a strategy even before there's reason to believe that something needs to be fixed. C. government planners should play a major role in deciding what product choices consumers should have. D. there is likely to be much less regulation of marketing in the future, especially with regard to consumer privacy. E. All these answers are correct.