Rainbow Company purchased land, a building, and equipment on January 2, 2024, for $850,000. The company paid

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Rainbow Company purchased land, a building, and equipment on January 2, 2024, for $850,000. The company paid $170,000 cash and signed a mortgage note payable for the remainder. Management’s best estimate of the value of the land was $352,000; of the building, $396,000; and of the equipment, $132,000. Record the purchase. Do not round intermediate calculations for the percentage allocation between the assets.

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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