Question: Deadwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Lot Appraised Value 1 $

Deadwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:

Lot Appraised Value
1 $ 70,500
2 235,000
3 164,500
Deadwood paid $210,000 in cash.
Requirement
1. Record the purchase in the journal, identifying each lot’s cost in a separate Land account. Round decimals to two places, and use your computed percentages throughout.

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