A B D E F G H J L M N o 1 General Journal Particulars Page Credit 2 PR Debit Date Question 1 3 Cost Allocation 4 Fair Market Value % of Market Value $800,000.00 $400,000.00 $600,000.00 Land Equipment Building Total 5 6 7 8 9 Record your answers for each of the following this practice exercise. Question 2 1. 10 11 12 13 14 15 16 17 18 Georgian Auto Body bought a shop from an existing business on June 15 with cash. The purchase includes the land, building and all of the equipment inside. The total price of the purchase was $1,500,000. The fair market value for the land was $800,000. The fair market value for the equipment was $400,000. The fair market value for the building was $600,000. Calculate the cost allocation for this basket purchase based on the fair market values given. b. Record the journal entry for this purchase. a. Question 3 19 20 21 22 23 24 25 26 27 28 2. On September 12, Olympia Construction trades a truck with the historical cost of $24,000 and a fair market value of $18,000 for a cement cutter. The cement cutter belonged to Chi Brothers Construction and had a historical cost of $22,000 and a fair market value of $18,000. a. Record the transaction for Olympia Construction. b. Record the transaction for Chi Brothers Construction. 29 30 31 32 33 34 35 36 37 38 39 40 41 3. On July 25, Ahmed Lecaj bought land for his business. The land cost $60,000. To ready the land for use, Ahmed had to pay for landscaping, $40,000; drainage and sewers, $30,000; inspection, $5,000; real estate commission, $10,000; and legal fees, $500. Record the purchase of the land. 42 43 44