Cobb Corn Company Purchases a Large Lot on Which a Building

question 183

Multiple Choice

Cobb Corn Company purchases a large lot on which a building is located.The negotiated purchase price is $2,500,000 for the lot and the building.The company pays $71,500 in commissions and taxes.The appraisal values of each item is as follows: land $650,000,building $1,750,000,land improvements $120,000.What is the appropriate amount to be recorded in the general journal for the building?

• A) $1,750,000
• B)$1,785,650
• C)$1,735,000
• D)$1,685,379
• E)$1,730,000