E9-14 Lump-sum purchase of assets

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E9-14 Lump-sum purchase of assets 
Deadwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
           
Lot
Appraised Value
1
$70,500
2
235,000
3
164,500
 
Deadwood paid $210,000 in cash.
Requirement

 

1. Record the purchase in the journal, identifying each lot’s cost in a separate Land account. Round decimals to two places, and use your computed percentages throughout.

 

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