purchase. An independent appraiser valued the machines as shown below: Clintwood manufacturing bought three used machines in a KD226,000 lump-sum 4. Machine No. 1 2 3 Appraised Value KD 84,000 127,200 28,800 a. What is the individual cost of each machine? b. Immediately after making this purchase, Clintwood sold machine 2 for its appraised value. Journalize the sale of machine 2.

purchase. An independent appraiser valued the machines as shown below: Clintwood manufacturing bought three used machines in a KD226,000 lump-sum 4. Machine No. 1 2 3 Appraised Value KD 84,000 127,200 28,800 a. What is the individual cost of each machine? b. Immediately after making this purchase, Clintwood sold machine 2 for its appraised value. Journalize the sale of machine 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of the component of the purchase is given below: Land 85000 Building 155000 Equipment 460000 Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction.
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