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← Lexington Garden Supply paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a fair value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journ entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit

← Lexington Garden Supply paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a fair value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journ entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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← Lexington Garden Supply paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a fair value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journ entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
Transcribed Image Text:← Lexington Garden Supply paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a fair value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journ entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
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