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Question - Quickbooks Company purchased land and a modern office building on March 1 for a combined cash price of $400,000. The land had a cost of $250,000 and the building had a net book value of $50,000 on the seller's books. The land and building had fair market values of $290,000 and $110,000, respectively on March 1. Quickbooks made the following entry at acquisition:
Land 350,000
Building 50,000
Gain on Purchase 200,000
Accumulated Amortization 50,000
Cash 150,000
Required - Prepare the correct entry for the acquisition.
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