Baldini's Restaurant Purchased a New Building with the Surrounding Land

question 14

Multiple Choice

Baldini's Restaurant purchased a new building with the surrounding land.The price paid was $1,200,000,including the commission charged on the sale.An appraisal of the land and building at the time of purchase indicated that the market value of the land was $1,000,000 and the market value of the building was $500,000.What amounts would be recorded for the purchase of the two assets?

• A) Land $800,000, Building $400,000
• B) Land $1,000,000, Building $500,000
• C) Land $1,000,000, Building $200,000
• D) Land $700,000, Building $500,000

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Definitions:

Gastric Secretion

is the process of producing and releasing fluids by the gastric glands in the stomach, including acid, enzymes, and mucus.

Acidic Chyme

The partially digested, acidic fluid that passes from the stomach to the small intestine, consisting of gastric juices and partly digested food.

Gastrin

A hormone that stimulates the secretion of gastric acid by the stomach's parietal cells for digestion.

Hepatopancreatic Ampulla

Dilation within the major duodenal papilla that normally receives both the common bile duct and the main pancreatic duct.