Allocating costs for a basket purchase
Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows:
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Land
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$160,000
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Building
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400,000
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Equipment
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240,000
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Total
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$800,000
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Required
a. Compute the amount to be recorded on the books for each of the assets.
b. Record the purchase in a horizontal statements model like the following one.
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Rev. 2 Exp. 5 Net Inc.
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Cash Flow
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