Ratcliff Corporation purchased land, a building, a patent, and a franchise for the lump sum of $1,450,000.

Question:

Ratcliff purchased land, a building, a patent, and a franchise for the lump sum of $1,450,000. A real estate appraiser estimated the building to have a resale value of $600,000 (2/3 of the total worth of land and building). The franchise had no established resale value. The patent was valued by management at $325,000. Give the journal entry to record the acquisition of the assets.

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...