Question - On February 1, a company purchased land with a building for a total cost of 2,600,000 (500,000 paid in cash and the balance on a long-term note). It was estimated that the land and building had market values of 1,200,000 and 2,400,000, respectively.
Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition.