Patty’s Auto Body bought a shop from an existing business on June 15 with cash. The purchaseincludes 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 equipmentwas $400,000. The fair market value for the building was $600,000.a. Calculate the cost allocation for this basket purchase based on the fair market values given.b. Record the journal entry for this purchase.

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Answer a Cost Allocation Estimated fair value Allocation per... View the full answer