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Record the journal entry for the purchase of the assets

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Reference no: EM132701941

Martin Health Associates buys an existing medical practice for $450,000 total cost using $50,000 cash and a $400,000 loan. Fair value of the physical assets per the appraisal is as follows:

Land 190,000

Building 115,000

Equipment 110,000

Vehicle 85,000

Total 500,000

Question 1: What should the amount recorded for each of the asset categories be using the above information?

Question 2: Record the journal entry for the purchase of the assets using cash and a bank loan

Question 3: Assuming the same fair value of assets of $500,000, they paid $600,000 for the assets - how would the excess payment be accounted for?

Reference no: EM132701941

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