Cobb Corn Company Purchases a Large Lot on Which a Building

question 185

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 items is as follows: Land $650,000,Building $1,750,000,Land Improvements $120,000.What is the appropriate amount to be entered into the general journal for the building?

• A) $1,750,000
• B)$1,784,621
• C)$1,735,000
• D)$1,685,379
• E)$1,730,000

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