A Company Purchased Land with a Building for a Total

question 19

Essay

A company purchased land with a building for a total cost of $2,570,000 ($500,000 paid in cash and the balance on a long-term note). It was estimated that the land and building had market values of $900,000 and $2,100,000, respectively.
Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition.

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Definitions:

Bytecode

A form of instructions that is processed by a virtual machine rather than directly executed by the hardware of a computer.

Interpreter

A program that executes instructions of a high-level programming language directly and translates them line-by-line into machine code.

Bytecode

Intermediate machine-independent code generated by compiling source code, typically Java, which is executed by a virtual machine.

CPU Machine Language

The low-level programming language understood directly by a computer's central processing unit (CPU), consisting of binary code or assembly language.