Baxter Ltd acquired a parcel of land, buildings and machinery on 10 July for a cash price
Question:
Baxter Ltd acquired a parcel of land, buildings and machinery on 10 July for a cash price of $2 400 000. Fair values of the assets on the acquisition date were appraised as:
Land Building Machinery | $ | 1 400 000 800 000 150 000 |
$ | 2 350 000 |
The acquisition was not considered to be a business combination.
Required
Calculate the amount of cost that should be assigned to each of the assets and prepare a journal entry to record the acquisition. Ignore GST.
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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