Safari Corporation Has Acquired a Property That Included Both Land

question 153

Essay

Safari Corporation has acquired a property that included both land and a building for $500,000.The corporation paid cash.The corporation hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000.Journalize the lump-sum purchase.

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Definitions:

Statutory Assignment

The transfer of rights or interests in a particular matter as authorized and regulated by statute.

Equitable Assignment

A transfer of rights or benefits from one party to another, recognized by equity courts even if not formally executed.

Vicarious Performance

A situation where an individual or entity performs a duty or obligation through another party, who acts on their behalf.

Assignment

The transfer of rights, duties, or interests under a contract or agreement from one party to another.