ABC Ltd acquires a factory from XYZ Ltd for the following consideration: Land from ABC Ltd for a cost of $200,000. The land has a fair value of $220,000. Cash $50,000 ABC Ltd has also agreed to pay one of XYZ Ltd's largest suppliers in the amount of $70,000 as part of the acquisition. 

What will be the correct journal entry that will appear in the accounts of ABC Ltd for the purchase of the factory?

Answer rating: 100% (QA)

To record the purchase of the factory from XYZ Ltd by ABC Ltd the appropriate journal entry would in... View the full answer