Question

Bell Incorporated (BI) purchased a group of assets together from one of their competitors whose owner had recently decided to retire and stop operations. BI paid $ 500,000 for land, building, equipment, and a patent. Independent appraisals had been completed on all assets prior to the sale. These appraisals indicated the following fair values for the assets:
Land ................ $ 250,000;
Building .............. $ 225,000;
Equipment............. $ 75,000,
And patent ............. $ 50,000.

Required:
Give the entry to record the purchase; show computations.



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  • CreatedFebruary 17, 2015
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