Timing Investments Purchased Land with a Building for a Total

question 192

Essay

Timing Investments purchased land with a building for a total cost of $6,000,000 ($500,000 paid in cash and the balance on a long-term note).The appraised cost of the land and building were $3,500,000 and $1,900,000,respectively.Calculate the costs to be allocated to the land and the building and prepare the appropriate journal entry to record the acquisition.