Vanessa recently paid $200,000 cash to purchase both a building and equipment. The fair market value of the building is $180,000, and the fair market value of the equipment is $40,000. When recording this purchase, Vanessa should
Vanessa recently paid $200,000 cash to purchase both a building and equipment. The fair market value of the building is $180,000, and the fair market value of the equipment is $40,000. When recording this purchase, Vanessa should
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vanessa recently paid $200,000 cash to purchase both a building and equipment. The fair market value of the building is $180,000, and the fair market value of the equipment is $40,000. When recording this purchase, Vanessa should
1. None of the answers are correct
2. Credit Cash for $200,000 and Credit Mortgage Payable for $20,000
3. Debit Building for $198,000 and Equipment for $44,000
4. Debit Building for $180,000 and Equipment for $40,000
5. Debit Building for $163,636.36 and Equipment for $36,363.64
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