Hamm Inc. purchased land, a building, and equipment from Spamela Corporation for a cash payment of $306,000.

Question:

Hamm Inc. purchased land, a building, and equipment from Spamela for a cash payment of $306,000. The assets' estimated fair values are land $95,000, building $250,000, and equipment $1,000,000. At what amounts should each of the three assets be recorded?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...