Problem:
Tony Company purchased assets of Billy Inc. at auction for $1,560,000. An independent appraisal of the fair value of the assets acquired is listed below:
|
Land
|
$171,600
|
|
Building
|
514,800
|
|
Equipment
|
600,600
|
|
Inventories
|
429,000
|
Required:
Question: Prepare the journal entry to record the purchase of the assets.
Note: Please provide through step by step calculations.