ACG 2021 - CHAPTER 8 - EXERCISE EXERCISE 1: BASKET (Lump Sum) PURCHASE: Use the following information to record the basket purchase using the t-accts below. If you get stuck, review the examples online and in the text. Makenzie Company used cash to purchase a new site for its corporate headquarters. The total cost was $100,000 and included land and a building. Record the purchase entry in t-accts Step 1: First evaluate the relative market values of each asset. An appraisal of the property showed the following Divide the individual market values by the total appraisal amount. Review analysis below and calculate the %'s Market Value $ 30,000 $ 90,000 $ 120,000 Work area Land 30,000/120,000- % Building 90,000/120,000- % Total Step 2: Multiply the market value %'s by the total purchase price to determine the cost of each asset and record the en Purchase Price $100,000 Market Value % Cost Land Building 100,000 Land Building Cash ACG 2021 - CHAPTER 8 - EXERCISE EXERCISE 1: BASKET (Lump Sum) PURCHASE: Use the following information to record the basket purchase using the t-accts below. If you get stuck, review the examples online and in the text. Makenzie Company used cash to purchase a new site for its corporate headquarters. The total cost was $100,000 and included land and a building. Record the purchase entry in t-accts Step 1: First evaluate the relative market values of each asset. An appraisal of the property showed the following Divide the individual market values by the total appraisal amount. Review analysis below and calculate the %'s Market Value $ 30,000 $ 90,000 $ 120,000 Work area Land 30,000/120,000- % Building 90,000/120,000- % Total Step 2: Multiply the market value %'s by the total purchase price to determine the cost of each asset and record the en Purchase Price $100,000 Market Value % Cost Land Building 100,000 Land Building Cash