Lump-sum purchase: When a group of assets is purchased in a single transaction for a lump-sum price, the said transaction is called a lump-sum purchase. When this kind of transaction occurs, the cost of assets acquired is allocated based on their relative market values. The entry to record lump sum purchase of assets.

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Chapter 10, Problem 3QS

To determine

Concept Introduction:

Lump-sum purchase: When a group of assets is purchased in a single transaction for a lump-sum price, the said transaction is called a lump-sum purchase. When this kind of transaction occurs, the cost of assets acquired is allocated based on their relative market values.

The entry to record lump sum purchase of assets.

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