On January 1, 2017, Alberta Company purchased land and a building for $1,120,000. At the time of

Fantastic news! We've Found the answer you've been seeking!

Question:

On January 1, 2017, Alberta Company purchased land and a building for $1,120,000. At the time of the purchase, it was estimated that the building had a market value of $700,000. On January 5, Alberta installed a fence around the property at a cost of $7,000. Given this information, the journal entry to record the purchase of the land and building would include a

a.debit to land for $700,000.

b.debit to land for $427,000.

c.debit to land for $420,000.

d.debit to land for $413,000.