On January 1, they purchased a plot of land, warehouse, and a piece of equipment (a Widget Maker) for a purchase price of $1,200,000. In addition to that cost, they paid 2% commission for finding the combination of all assets, $28,000 in back taxes, and assumed an outstanding note payable of $187,000. They paid $20,000 for demolition and removal of small utility building on the property. They also paid $13,000 to install a new parking lot. The fair value of the land, warehouse, and equipment were $220,000, $870,000, and $415,000, respectively. 

a. Record the purchase of the land, warehouse, equipment, and parking lot.?

Answer rating: 100% (QA)

To record the purchase of the land warehouse equipment and ... View the full answer