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losing its operations, for a lump sum charge of $3,250,000. The following assets were acquired, as a lump sum package, with the seller's book valuation for each asset. and and Development $425,000 360,000 Buildings 1,800,000 Motor vehicles 81,000 Before taking possession of the assets, Banjo Motors sought and received the following expert valuation for each asset

losing its operations, for a lump sum charge of $3,250,000. The following assets were acquired, as a lump sum package, with the seller's book valuation for each asset. and and Development $425,000 360,000 Buildings 1,800,000 Motor vehicles 81,000 Before taking possession of the assets, Banjo Motors sought and received the following expert valuation for each asset

FINANCIAL ACCOUNTING
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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Question 2 Banjo Motors is a successful company that operates in the used vehicles trade. It recently acquired another company, closing its operations, for a lump sum charge of $3,250,000. The following assets were acquired, as a lump sum package, with the seller's book valuation for each asset. Land Land Development $425,000 360,000 1,800,000 81,000 Before taking possession of the assets, Banjo Motors sought and received the following expert valuation for each asset category: Buildings Motor vehicles Land Land Development $375,000 345,000 1,540,000 Buildings Motor vehicles 66,000 Banjo Motors paid legal fees and other costs of $18,500 to complete the formalities of the purchase. Using the above required data, prepare the general journal to post the purchased assets into the ledger of Banjo Motors.
Transcribed Image Text:Question 2 Banjo Motors is a successful company that operates in the used vehicles trade. It recently acquired another company, closing its operations, for a lump sum charge of $3,250,000. The following assets were acquired, as a lump sum package, with the seller's book valuation for each asset. Land Land Development $425,000 360,000 1,800,000 81,000 Before taking possession of the assets, Banjo Motors sought and received the following expert valuation for each asset category: Buildings Motor vehicles Land Land Development $375,000 345,000 1,540,000 Buildings Motor vehicles 66,000 Banjo Motors paid legal fees and other costs of $18,500 to complete the formalities of the purchase. Using the above required data, prepare the general journal to post the purchased assets into the ledger of Banjo Motors.
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