Answer:
Explanation:
The journal entry is shown below:
Land A/c Dr $1,459,920
Equipment A/c Dr $2,085,600
Building A/c Dr $1,668,480
To Cash A/c $2,607,000 ($5,214,000 × 50%)
To Notes payable A/c $2,607,000 ($5,214,000 × 50%)
(Being purchase of property is recorded)
The total property cost would be
= $4,700,000 + $185,000 + $218,000 + $111,000
= $5,214,000
Estimated value of land = $5,214,000 × 28% = $1,459,920
Estimated value of building = $5,214,000 × 40% = $2,085,600
Estimated value of equipment = $5,214,000 × 32% = $1,668,480
