Problem:
During Year 4, a firm purchased land, building, and equipment for a lump sum payment of $450,000. In connection with this acquisition, the firm also incurred legal fees of $5,000, accounting fees of $5,000, real estate transfer taxes on the building of $10,000, building inspection fee of $2,000, and appraisal costs of $10,000. The appraisal established the value of the land at $100,000, the value of the building at $300,000, and the value of the equipment at $100,000. All the costs have been accumulated in a temporary account titled "Site Acquisition Costs."
Required:
Prepare the journal entry to record the acquisition of the property and the related fees.